Is it illegal to try to manipulate a certain stock?

Question

Here is my example.
A guy who is in charge of the news, lets say FOX.... gathers people who have totalled up how much money they have spent at starbucks over an entire year. He decides to short the stock before the news goes out, and has they people showing $2000 spent on Starbucks, or $5000, then someone comes up and shows them a machine that could have 90% of the costs... THis is just an example...

That is public information, Lets say I spend $1200 a year on STARBUCKS.... These guys on camera catch me saying that and the guys behind the cmera short before it displays.

Answer 1

Most importantly, your example is using public information and the information is not from the company itself or any major suppliers or buyers. I have no idea why someone would short a stock based on the individual information you provided, but in that specific case, it is not illegal.

If the information were material and non-public, it would be very illegal.

Answer 2

Yes, it's illegal to manipulate the price of a stock.

But in your example - there's no way that someone saying on camera that they spend a couple thousand dollars a year at Starbucks is going to have any effect on the price of the stock, so if that was done, wouldn't be a problem.

Answer 3

I would hope the guys behind the camera are doing better research than that. Making a stock play on some random joker's annual expense at Starbucks?

Answer 4

If you use information that isn't available to the general public it is illegal.

Answer 5

No.

If Rupert Murdoch could do that then he would be the richest man in the World.

Answer 6

yes that illegal. well, states have different laws so depends which state you live in

Answer 7

ask martha stewart.