Financial Markets Vulnerable to Manipulation Due to Information Asymmetry
The article discusses how information imbalances in financial markets can lead to market manipulation and high volatility. The researchers recommend passive asset management strategies to minimize the impact of information disparities. They suggest focusing on fixed-income instruments to reduce the need for tracking price changes. By considering both market dominance and behavioral aspects, a modern approach to investment risk is proposed. This new perspective can help in regulating financial markets and understanding why people are not very active in investing.