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for hajda2 Hey hajda2In answer to your question see the scenario...

  1. 177 Posts.
    for hajda2 Hey hajda2

    In answer to your question see the scenario below. Im not personally suggesting any one is doing this to RRS, but with a bit of research you can make up your own mind. Here’s a hypothetical scenario.

    Hypothetical Scenario: company X would like say 50,000,000 shares in company Y. Company X cannot simply place an order for 50,000,000 shares on the market as 1) don’t think its allowed, 2) this would send the share price to meteoric highs. So, how do they get their stake? Place several orders for 2,000,000 shares at varying increments and the price goes up as daytraders, etc enter. So they do this about 5 times and now they have a holding of 10,000,000 shares but the price is too high to keep accumulating. So they dump in 1,000,000 share increments and the price goes down. Say they do this 5 times. They now have a holding of 5,000,000 shares and the price is as low, or lower than when they began. So, now they just repeat the process as many times as they want. End result, they accumulate as many shares as they want, at the cheapest possible prices.

    Okay, very very brief and a tad naïve so don’t attack me if I’ve forgotten details. SP manipulation is “illegal”, but have seen it happen to many shares.

    Cheers
 
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