Showing posts with the label wall st

The House of Fraud

As time goes on Wall Street's game of bankrupting beloved businesses in order to make absurd amounts of money is scrutinized more and more. A Reddit post by u/AndiCat sheds some light on this whole situation. They break down every illegal and predatory tactic that Citadel and other hedge funds have been using for years now. You can find the Reddit post here , it’s quite lengthy but it’s in-depth and worth a read. The first item on the list is payment for order-flow and frontrunning. Payment for order-flow is when a brokerage firm (Robinhood) gets paid by a market maker (Citadel) to direct their users' orders towards the market maker. Citadel can then use the information they are getting from these orders by front-running stocks, buying or selling a stock based on that insider information, and making billions. As we all know using insider information is a big no-no for trading on the stock market and yet Citadel hasn’t even gotten punished for this. The only retribution I could