I read on the message boards all these complaints about stock manipulation, about how all the institutional shorts are driving down prices etc etc. Is this true? And even if it is true, won't the price return quickly to its "normal" price?
2006-07-26 05:19:18 · 6 answers · asked by Yardbird 5 in Business & Finance ➔ Investing
stock manipulation is a fact of life. It happens every day in perhaps every stock, especially on big board stocks where the market is controlled by the specialists. Especially at the market open. You are in general correct that the prices do tend to normalize, I think.
Short sellers are blamed for everything bad that happens in the market. I will grant that they can effect the price of a security, but they are not the cause. Lousy management is the cause. The short sellers are just taking advantage of a situation. And there have been many situations in the past where the shorts got squeezed. The classic case being Stutz Motor Car in the early 20's. The shorts were all big board members, so the NYSE to save their asses ruled that they did not have to cover their short positions.
There is nothing fair about the dealings of the NYSE. Remember that. Their goal is to maximize the profits of the members of the exchange.
2006-07-26 05:54:41 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Stock manipulation is more real than you can ever realize. I personally stopped 'investing' in the stock market when I realized how much it was manipulated. The market is basically run by the major houses like Goldman Sachs, Merrill Lynch etc. These people root into large companies and manipulate everything to their favor. I can't go into detail here as it would take too long. But I have personally witnessed a major company go bankrupt leaving stockholders empty handed with 0 value on the shares then turn right around and relist the company under a new name with share prices starting around $26. Only the company big wigs made it through, everyone else lost their shirts. Things like this happen more often than people realize. I am just glad I learned this lesson early as I will never invest in the so called stock market ever again.
Please take the time to research how it works for yourself and then see how unsafe your money really is.
2006-07-26 05:26:56 · answer #2 · answered by Tracy 2 · 0⤊ 0⤋
As common as sand in the desert. Most of the shady deals go on in the derivatives markets - Stock options, future contracts, forward contracts etc.
2006-07-26 05:26:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If insiders commerce illegally, they're risking each and every thing in the experience that they get stuck; their jobs, destiny, each and every thing. no matter if that is happening, they might want to save their procuring and promoting very small to save it less than the radar, and has a minimum effect on value. what's your question?
2016-10-15 05:43:40 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I have no idea how common it is. What I do know is that undisciplined investors who lose money and then look for anything besides themselves to blame are *very* common.
2006-07-26 05:23:02 · answer #5 · answered by Andrew R 2 · 0⤊ 0⤋
I think you are confusing market impact with market manipulation...
2006-07-26 05:27:22 · answer #6 · answered by NC 7 · 0⤊ 0⤋