Hi Stowaway
Its a fairly common practice. The manipulator either holds or borrows a large amount of shares in the company.
They place buy orders below each of the current bid prices.
Then they begin to sell down to their own bid prices.
In short they are selling to themselfs.
This starts panic selling and others sell at lower and lower prices to the manipulator.
In many cases, the company being manipulated also has PUT OPTIONS on issue. In this case the downramper buys the PUT'S first and then commences to push the SP down. Here they accumulate shares cheaply and also make a profit on the put options.
When they have accumulated what they need, they stop selling, reverse their puts to CALL OPTIONS, and begin a reverse process of buying a moderate number of shares to get the SP moving upwards.
You can work the rest out.
Angers
- Forums
- ASX - By Stock
- CUO
- organised sell down
CUO
copperco limited
organised sell down, page-7
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CUO (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, Managing Director & CEO
Charles Armstrong
Managing Director & CEO
SPONSORED BY The Market Online