As time goes by more and more people enter the investment industry and want to invest their money in financial markets. One of the biggest problems of the investment industry is the lack of transparency. A lack of transparency is a critical risk factor, which may lead to large financial losses as well as reputational harm. In order for investors and regulators to be able to monitor and make investment choices consistent with their financial and ethical commitments and standards, firms should give them the information they need. Investors’ confidence suffers when there is less information available. Investors may never be confident of a company’s underlying fundamentals and true risk when accounting information is not open. So, what should investors know about investment transparency, and how the lack of transparency, as a problem, can be solved?
Things to take into consideration
The problem of the lack of transparency in the investment market isn’t a new thing. Many investors have seen the loss and damage as a result of the ambiguity in the field of the investment industry. One of the best examples of this was the Robinhood scandal.
This morning, Robinhood wrote a blog post announcing that it was restricting its consumers by barring them from purchasing shares in GameStop, AMC, and Nokia. It claimed “market volatility” as justification for only allowing consumers to sell their shares in certain businesses, and forbidding any other kind of transaction. In the end, Robinhood is merely one of many players in a long-established public securities market. This structure keeps the real transactions and settlements secret from the public, which is why brokerage applications like Robinhood are only the visible tip of an iceberg. Because of this lack of transparency many investors have seen the loss of their funds, as well as the company named Robinhood, has damaged its reputation among the investors. It should be stated that this scandal could be avoided if there was not a lack of information about the accounting and financial-related reports. If the investors knew much about the company’s financial reports, they wouldn’t see such a big loss.
As time goes by and technological advancements open the way for new startups, new solutions appear on the horizon. One of the best examples of this is the startup named investfox, which has one main and significant goal – to reduce the lack of transparency in the investment industry. With the help of this platform, traders and investors can get almost all information about the company, its financial condition, and the way it works for a certain time. In addition to that, the fact that investfox provides its customers with expert reviews and user-generated feedback increases the chances to avoid losing money from investing it in risky assets and companies. If there was an investfox period to the Robinhood scandal, most of the investors would be able to avoid the financial losses, that were caused by the lack of transparency in the investment industry. It should also be stated, that rather than searching for the reviews in a big thread on Reddit, which is one of the most used social media among investors, traders on investfox can easily find what exactly they look for, thanks to nice sorting and filtering function, which saves the investors’ time. Next to this, investfox also provides a broker comparison function that matches one brokerage against another and highlight the main similarities and differences, making a potential search for a suitable broker much easier.
More to know about the solutions
Time is money is an old cliche. When an investor starts his/her career, he/she always try to spend as little time as possible on finding the things that are necessary and inseparable from investing. With the help of investfox, which is a newly launched European startup, customers can save their time. As there is big data and information on the internet, it’s quite hard to find the exact thing you are looking for on the internet. For example, when you want to find a financial service provider, you search it on the internet, and you need to take several steps until you find the most matching one to your interest and strategies.
You should look at the regulation status, features, and services that are provided by the company, and the fees, and costs related to getting services. All of these take a lot of time, which means in search of the most suitable broker, you may miss a great chance in the volatile financial market. In order to overcome this problem, the fintech platform – investfox, allows you to easily find the most proper financial service provider, with the help of an expert and user-generated reviews.
In addition to the above-mentioned benefits, investfox makes it easier for newbie investors to get knowledge about the process in the investment industry. Newcomers can visit a learning center and find every thing that should be considered when it comes to investing your money in financial markets. The blogs are generated by experts with a big experience in the field of the investment industry. It is also worth mentioning that the more you know the better decisions you make. So, the problem of the lack of transparency in the investment industry can be minimized with the help of the investfox and its similar startups, that provide both newbies and experts investors with a plethora of financial reports about financial service providers and companies and information, that is worthful for making a rational and effective decision.