Empirically, no. Large blocks of stock don’t have a liquid market; they’re closed to a banked transaction than a pure trade. Forcing them into the open simply means chopping it into tiny pieces while using derivatives to hedge, for the sophisticated, and getting hosed, for the unsophisticated.
In fact, many have the opposite effect and result in more efficient price discovery. Take naked shorting for example. Without shorting, it would be far more difficult for an equity research firm to be incentivized to look into fraudulent stocks, as was widespread with Chinese companies a few years ago. Without their efforts, stock prices would have remained inflated for longer.
Many markets (e.g. Australia and Switzerland) do this. We have the comparative data to show it doesn’t do anything good while increasing volatility.
You listed a bunch of financial buzz words and didn't disprove OP.
Please show how naked shorting incentivized good due diligence.
You could have just pointed to the massive new supply that was announced, it's the logical reason why the price dropped.
Geopolitics are the primary mover of markets currently.
Naked shorting skips it all. Some market makers are privileged and can sell stock they don't own and didn't borrow. So they have a privilege of printing stocks in the short term, and that's quite broken, and many of them abused this position to manipulate markets. Normal participants in the market can't naked short.
Naked shorting means that the market maker who supposedly sold you a stock, can now fail to find the stock he sold you, leading to "fail to deliver".
The excuse given is that naked shorting allows for more liquidity, but given the other problems, I think it's bad.
I assume you have a counterpoint to the decades of data the NYSE, SEC, Financial Crisis Inquiry Commission and others around the world have collected that show naked shorting improves liquidity without FTDs negatively impacting price discovery while tamping volatility, evidence made particularly robust by the fact that naked shorting is permanently banned, and has been temporarily banned, in many markets, such as Australia, Switzerland and, for some stocks post crisis, in the United States? (See Wikipedia for a summary.) The whole affair reminds me of the lead up to the Onion Futures Act [1].
No one designed this system. It grew, organically. People started recognizing parts of it they could take advantage of, and pushing to have those parts become more prominent, largely individually (as opposed to in one grand conspiracy of collusion).
It may be true that some of those people believe it is in their best interests that the markets be "broken", and so have pushed that far intentionally, but there is no one overriding will and no single hand on the rudder to even be able to do that on purpose. It's all just greedy people trying to get their own interests put before everyone else's.
How do you spell "insider trading?"
For example, if you figure out a cheaper alternative to lithium, and want to bet that lithium prices will fall as a result of reduced demand, then those are your spoils for figuring that out.
The phone numbers of the people doing construction in my area. Largely through relationships with interior designers and architects.
Without that fiduciary responsibility, it's not insider trading, it's just trading. If you overhear someone with inside information talking about some inside knowledge, then trade based on that, you're in the clear (as long as you didn't collude with the leaker.)
We aren't rushing to make nuclear fusion because we have insufficient electricity... and you can't replace what the scientists know with another coal plant.
Global survelliance, inifinte database records and instant comms has really destroyed the potential to keep and develop real secrets. It's going to hurt (badly) in the long run.
So insider trading for as long as GCHQ/CIA/NSA refuses to rat people out....
Speculation and gambling about what future prices will be are not the big issues here, the markets themselves are completely broken (by design).