Читать книгу Equity Markets, Valuation, and Analysis - H. Kent Baker - Страница 49

Besides liquidity and market efficiency, another important requirement for a good market is investor trust and confidence. Others may overlook this issue, but not the U.S. Securities and Exchange Commission (SEC).

To illustrate the importance of investor confidence and trust, remember the old adage: fool me once, shame on you; fool me twice, shame on me. As related to market trading, investors are unlikely to trust people or organizations that trick them. Being tricked in the capital market means losing money. A lack of trust in the market and its integrity leads to fewer investors and less market efficiency and liquidity. However, Diamond (1989) notes that building a good reputation and trust with investors takes a long time.