Fraud with Funds?

Could a kind soul please summarize how Funds function?
I just have a "logical" feeling that there is a big potential for fraud with Funds.
I would like to learn more about the inner workings of Funds.
Thx

 

+fraud

 

Yes thank you...that too..

 

1. why do you care?
2. instead of asking just asking a question also explain the "logical feeling" behind the question.

 

botpro, I'm baffled. It's like you're two completely different people. One person is making intelligent remarks that display a high level of understanding of the finance world, talking about Sharpe ratios and clearly knowing what you're talking about for example. Then there's questions like this and 9/11 conspiracy diatribes. What's going on man?

 

The field of finance is big, ie. there are different classes of instruments and markets.
I simply admit, that I don't know all of them. For example the Funds products (and also the futures, bonds, CFDs etc., and not even currencies nor commodities) I never traded yet,
I only know stocks and options trading yet.
I'm just a seeker, a learner, making progress every day.
Thx

 

Because, I *think* (I'm not sure) the Funds industry is intransparent.
And if that is the case then the door is open wide for frauds...
My "gut feeling" tells me this...

And why I do care? A good question, thx.
I care because I think I see an injustice happening, ie. people get legally robbed.
I think I shouldn't be silent nor accept such abuses/crimes/frauds in the markets and in the society.
If such things get accepted or tolerated then the society would end up being a wholly corrupt society, and it wouldn't be worth to raise up kids in such a sick society...
Ie. my motives might maybe very egoistic, ie. a kind of self-protection...

 

Well I'll leave you with this; you seem to be at your best when you leave the conspiracy thoughts behind. I might suggest you channel that part of yourself into finding opportunities to profit by finding and shorting the conspiracies of the world, i.e. finding the next Enron before the rest of the world catches on or the ETF that is engaged in fraud. This will keep you honest because you'll be backing up your beliefs with your money.