The stock-market collapse has emphasised the topsy-turvy world of investor euphoria and dismay. The shareholder public has suffered a crisis in confidence in those charged with the management of their investment, chiefly the corporate directors or CEOs.
There has been a significant impact from corporate accounting scandals as two-thirds (62 %) of UK private investors are now less trusting of all company reports and accounts.
What is true seems to be a disconnection between real risk and a perceived “good investment” and the investor votes with his wallet.
Certainly, the investor has turned to regulatory safeguards in desperation, but the protection may turn out to be rather cosmetic at times. More realistically, there is a limit to help and compensation that can be provided post facto. Or that the public naively placed too much faith in the FSA, SEC or FDIC in getting back all (or most) of their losses. This market is full of unrealistic expectation.

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