Stock Price Manipulation

Stock and Bond Fraud, including Boiler Rooms / Pump and Dump Schemes, Mutual Fund & Hedge Fund Fraud, FOREX scams, plus Churning, Private Placements, Venture and Bridge Funding, IPOs, Viaticals Fraud, HYIP and Prime Bank scams, MTNs, Historical Notes, Recovery Schemes, etc. Includes the Jim Norman Project and the Michael Dotson Project and similar HYIP scams.
Green Lantern

Stock Price Manipulation

Postby Green Lantern » Tue Mar 20, 2007 4:03 pm

Hardly a new activity, but the very public and almost nonchalant disclosures rather have the markets buzzing today. It seems a bit sad to have to say that the most regulated, transparent market in the world is a bit of a "scam," albeit a legal one. I've read that the top 5 brokerages (Goldman Sachs. Morgan Stanley, Merrill Lynch, et al) now account for more than 75% of the market activity. It is easy to control stock proces when the mere act of buying will raise the price.

Anyway----here's what Cramer had to say according to the NY Post:
By Roddy Boyd
New York Post
Tuesday, March 20, 2007

http://www.nypost.com/seven/03202007/bu ... it_too_m...

Flamboyant Wall Street trader turned TV host Jim Cramer, not known for being the shy, retiring type, might have said too much in a video interview he did for a financial Web site.

The host of CNBC's daily program "Mad Money" had hedge fund-trading desks buzzing yesterday after he bragged about manipulating stock prices during his days as a trader.

In the video from TheStreet.com's "Wall Street Confidential" Webcast, Cramer boasts about manipulating the price of a high-flying stock down, and even acknowledges that doing so might have been illegal. The video is making the rounds on YouTube.

"A lot of times when I was short, I would create a level of activity beforehand that would drive the futures. ... It's a fun game," Cramer said in the Webcast, which was moderated by TheStreet.com Executive Editor Aaron Task.

Cramer later said that "no one else in the world would ever admit that, but I don't care."

However, seconds later, he acknowledged, "I'm not going to say that on TV," referring to his show on CNBC.

A remarkably successful money manager when he ran the $450 million Cramer Berkowitz hedge fund, Cramer in the Webcast shared his "tips" on how to drive a stock price down so that a short position -- a bet that a stock price would drop -- remains profitable.

He added that the strategy -- while illegal -- was safe enough because, "the Securities and Exchange Commission never understands this."

A call to Cramer was not returned.


This makes those little E-mails we all get, touting unknown pink sheet stocks, seem almost innocuous.

Green Lantern

Re: Stock Price Manipulation

Postby Green Lantern » Sun May 27, 2007 10:47 pm

An interesting piece on Rigged U.S. Markets was run recently by, of all sources, Al-Jazeera. The analysts are well-known commentators. Given our media's newly found penchant for "self-censorship" and our societal pre-occupation with Bush, Iraq, oil and related issues, a lot of fraud by hedge funds, mutual funds, CEO's, and banks is flying under the radar so to speak.

silversopp

Postby silversopp » Tue Jul 03, 2007 8:27 pm

I thought it was pretty well known that the buyers and sellers of stock manipulate the price of the stock. It should be equally well known that in any free or relatively market, the buyers and sellers manipulate the price of a stock. Microeconomics teach us these things.

I've dabbled a bit in the stock market, and even the tiny amount of money I had invested had a noticable effect on the price of stocks. When I would sell my shares, I would ask for a little bit more than the price of the stock. When someone bought those shares, the price jumped up to my asking price. Amazing.

If someone had millions, compared to my thousands, they could influence prices much more. And those with billions even more so. Before getting involved with a market, understand that market.

No_Name1

Postby No_Name1 » Wed Aug 15, 2007 5:10 am

Hardly a new activity, but the very public and almost nonchalant disclosures rather have the markets buzzing today. It seems a bit sad to have to say that the most regulated, transparent market in the world is a bit of a "scam," albeit a legal one. I've read that the top 5 brokerages (Goldman Sachs. Morgan Stanley, Merrill Lynch, et al) now account for more than 75% of the market activity. It is easy to control stock proces when the mere act of buying will raise the price.


It's not a scam, but the stock market holds many risks, most of which are public knowledge.

My boy, that's why there are no-load index funds. Funds that mirror the S&P 500, or the Russell 2000, or other commonly used indexes.

That's why you diversify your portfolio, growth and value, large cap, mid cap and small cap, domestic, global, international (and yes there is a difference between global and international), real estate (there are real estate mutual funds that invest in REITs and UITs) and even a tast of commodities (again there are even mutual funds for that - commodities, precious metals and such).

And, ideally, you also have money set aside for pure speculative plays. Not part of your portfolio, but a side pool of money that if you lost it, it would be no big deal.


Exactly. I'm a firm believer in long term investing, and no load index funds are fantastic in the long term. I hold several. Speak to someone who makes a living at investing to help you, preferably someone who has been financially successful. :)

disclaimer: I am in no way in a position to offer professional financial advice. Take all of this with a grain of salt.

An investor in stocks needs to realize that yes, price swings occur when large investment companies add to or remove from their holdings. This isn't a scam, but an investor needs to realize all macroeconomic factors when purchasing an investment. This takes a huge amount of time doing research, and hopefully a carefully calculated risk. As the good Capt. says, diversification is your friend, it's not a buzzword, it's necessary.

When looking at speculative stock purchases, I don't bet all my savings on them, and I bear in mind what the institutional investors are likely to do and how it will swing the markets.

Rules:

1. Diversify. Fraud happens, as do other calamities.
2. Don't follow stock tips. Do your own research.
3. Great returns require great risk, there's no free lunch. Great risk does not necessarily insure great returns.
4. You can become modestly wealthy by long term investing, but you must diligently invest. Be wary of get rich quick schemes.
6. Know your risk tolerance, and know your goals. I want to retire in comfort, that is all. I have a friend my age who borrowed a great deal to buy a stock he thought was going to perform well and it did. It gave him a small fortune to work with, but would not be something I would do or recommend to anyone. He could have just as easily lost all his money and owed.
7. Finally, in relation to point 6, if you can't sleep at night you are assuming too much risk.

In terms of financial planning I do the following, but keep in mind everyone's situation is different:

1. I won't borrow money to purchase things that aren't likely to appreciate in value. If I don't want to pay up front for something, I don't buy it.

2. Pay off your credit cards, and pay the full balance every month. I only use my credit cars for things like car rentals and hotel rooms, and other expenses like that.

3. Make a will. Talk to your spouse, hire a lawyer, and just do it. You don't know when you are going to die.

4. Hire a good professional accountant.

I've kind of wandered off the original topic, but I find when people start talking about investing they often have other financial holes in their life they need to patch as well.

texino
Grand Debunker of Medical Quackery
Posts: 547
Joined: Fri Mar 25, 2005 4:08 am

Postby texino » Fri Aug 17, 2007 2:53 am

Nice to see some action on the old Dil board; always useful information. I admit that it doesn't have the cliff hanging suspense of a fellow receiving a key to Swiss city and his very own bank charter, but our good Mr. Norman has just gone uncharacteristically silent.

Oh well, buy low sell high!

Regards to all.

TT

Myinvestors

Re: Stock Price Manipulation

Postby Myinvestors » Thu Nov 06, 2008 6:32 am

Larry ellison who is the CEO of oracle sold 1 million shares, and that caused the price to drop from 19.40 to 18.28 in less than 2 days, when I checked the volume of shares being sold it was very low, and then it suddenly shot up to 19.02 in 3 hours, could it be that the traders are selling small amounts of shares at a low price to drive the volume low and then buying a lot when it goes back up, I dont think that the CEO selling 1 million shares should have done this. They could be short selling in the opposite direction too.

MyInvestorsPlace - Trading, Investing, Forex, Stock, Systems, ETF, Crude


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