How People Cheat The Stock Market | The Problem With Jon Stewart Podcast | Apple TV+

The Problem With Jon Stewart is now streaming on Apple TV+

Listen to the full podcast episode here:

Former SEC commissioner Rob Jackson joins Jon to unpack the Problem(s) with the Stock Market, including why your average investor is basically trading in the dark, and the blatant lobbying that keeps Wall Street from ever facing consequences when they cheat (which they do A LOT).

Some terms in this episode you may not know but should know:

Arbitrage: Exploiting a price difference of the same asset. It’s like buying avocados at the supermarket for $1 each and selling them at the hipster farmer’s market for double.

Citadel, which is an investment company. Citadel is a market maker – meaning they help investors buy and sell securities, using the pool of shares they own. They’re basically a middle man, with access to highly important information.

Dark pools are private exchanges for trading securities that are not accessible by the investing public.

Options trading is buying and selling of options, which are essentially contracts that give you the right to buy or sell a stock at a certain price by a certain date. It’s basically betting on a stock price going up or down. So if you purchase an option, instead of buying a stock, it means that you are buying the option to buy a stock if it hits a certain price, and this can lead to issues because if your bet fails, you’ve lost all that you’ve invested. Whereas, if you bought actual stocks, regardless of the price, you still own that asset.

Payment for Order Flow is when brokerages such as Robinhood route the buy and sell orders of retail investors to big market makers such as Citadel and Virtu instead of sending it directly to the stock market. This deal helps brokerages make hundreds of millions of dollars every year

Retail investors are individual, non-professional investors who are buying assets with their own money.

Securities: any tradable financial asset – stock share (equities), bonds, investment funds, pensions, etc.

The Securities and Exchange Commission – or SEC – oversees securities exchanges, brokers, investment advisors, and mutual funds, to create fair dealings, the disclosure of important market information, and to prevent fraud

Bildungsroman: Just kidding, but do you remember that from English class? You need to know it. Please google it.

For more words and definitions:

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43 thoughts on “How People Cheat The Stock Market | The Problem With Jon Stewart Podcast | Apple TV+”

  1. I've been looking over the transcript, and I don't see any substantive claims demonstrating bad behavior. It's simply assumed? I see fines all the time for bad behavior. Spoofing is a common one. I've worked for a couple of trading companies, and in each case they have very strict rules. Trading companies want a good relationship with the regulating bodies and the exchanges, or else THEY ARE OUT OF BUSINESS. It's not all roses, but it's not rotten to the core like people make out.

  2. they are barking at the wrong tree, dont fiine companies, instead just make employees of rouge wall street companies personally liable, e.g. slap them with personal fines and jail time. All of a sudden the stakes are much higher, they will think twice before breaking the law.

  3. Jon Stewart, you are one of the fearless critics of the people who are tasked the job to uphold SEC reputation and duties. these folks will not do any good cos they are waiting for back door postings.. they are all corrupted by Wall street and the corrupt market makers

  4. Something is definitely wrong and I feel like businesses are gouging us and then hiding the money in some kind of offshore account when it comes to giving that profit to the stockholders! It's like the President and crew are getting all the extra profits in bonuses! I am losing my ass but profits are astronomical! Something is wrong!

  5. I was robbed by advice givers to invest in a manner that made my $$ go down while they got rich. They have no conscience about stealing small investors $$. Thieves left me with with no $$ for retirement and all. the time they were advising me in a manner that they win and I lose. Capitalism as practiced on Wall Street are criminals who think investors are the money funnels to their wealth. Broke and 80 is not a nice place to be in today’s USA. Their is no conscience

  6. I put close to $50,000 from my retirement fund into E*trade in the early 21st century. It was down to less than $2,500 after 18 months using E*trade and taking advice from folks in their site that I thought was E*Trade, but I learned and expended my $$& to their advice. Do Not go into E*Trade expecting advice to

  7. Fuckers suppressed testing while the virus was spreading. Meanwhile they move their investments around. People were already dead and dying. On March 8th, 2020 my husband died of what the hospitalist said "looked somewhat like pneumonia" officially an "acute respiratory event". He had Covid-19 symptoms and I had mild gastrointestinal symptoms & a headache that would not relent. He had opacities on his lungs and brain. When I asked for a covid test the hospital told me it wasn't in our area yet; only to later admit they lied and didn't have tests at that time. The coroner's office scheduled then canceled his autopsy. I've never been a conspiracy nut, but I believe, when it comes to the pandemic, there was fuckery from congress to the white house to Wall Street well before the citizenry knew about Covid-19.
    If we can't get money out of politics, close the revolving doors between corporations, banks & regulatory agencies, and actually prosecute corporate executives, banks, politicians and regulatory puppets when they break the law, we are fucked.

  8. It feels like if people don't see any growth in a week or a month they will throw a tantrum and then call the market a scam lol. Forgotten It's always the hard times that show us how to be better investors making about $2 million over the long term; understand and know the required path and remain committed to the craft. Be smart and don't let fear stop you from making money.

  9. Just to be clear. The interest at 3.75% for business loan is not helpful at the time of the pandemic. Also, there is a limitation for qualifying for the PPP loan. This programs did not help the small businesses that have a small payroll. Ultimately the company with 20 to 500 employees benefited from the PPP program.

  10. Jon, I'm thankful for your valuable input into our nightmare financial situation, but wish you'd stop over-using the f-word. It's not funny and not cool. You have the brains to use a more adult vocabulary. And by the way, same goes for the awful music.


  12. JPMorgan and other Wall Street Banksters, and their criminal bullion traders, have been fined hundreds of millions of dollars in the last decade for admitted market manipulation for their financial gains, yet not one of these white collar criminals has seen a day behind bars. And who gets screwed out of their gains, the retail investor. The CFTC and SEC are criminal entities for their failure to end this white collar Wall Street ongoing criminality. The entire system is set to work for the wealthy by stealing from those who are not part of their criminal club. I am all out of the stock market,….never to return again.

  13. Jon: options are more profitable in large part because leverage is so much higher. The options exchanges dictate margin requirements which tend to be single digit, vs. the NYSE which has margin set by the Fed. It's been stuck at 50% since the early 1970s. Any surprise that equity trading has moved from the stocks themselves (only levered up to 50%) to equity options (which can leverage >90%)?

  14. Sorry, but you guys don’t really know what you’re talking about when it comes to order flow & order execution. Please do a little more research & stop the accusations.

  15. They the sec are doing there job there telling us what there told to tell us ,if they protect us they then they would be out of the exchange market . Cause the one percenters donas they want and it there exchange sec is just a guest in the one percenters house , no obey the house rules then get out of the house .either way they are both guilty of breaking laws and not giving a shit about us

  16. Jon Stewart is the voice for the common human…he has so much integrity!!!! As an X Broker…this interview is right on the money…I had to leave back in the Milken and Boesky era bc I realized how corrupt the stock market is. Only woman in an office of 30+ …I go to my boss and say I can't sell these Junk Bonds; I've read the prospectus and it makes no sense…he says "they don't need to make sense..just sell them".

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