Market Manipulation?????

  1. 636 Posts.
    lightbulb Created with Sketch. 43

    Lately, I see a lot more claims in the stock specific forums I go to that "they" are manipulating the market. Thing is, when people post these comments they never say what exactly "they" are doing to manipulate the market.

    For example, I have bought into a stock that is the subject of takeover rumors. The share price has been quite volatile lately but mainly on a downward trajectory, which has led some to speculate that "they" are deliberately forcing the share price down before announcing a takeover bid.
    I must admit I don't really put much credence in these claims and one thing those who make these claims never say is exactly how they think "they" are forcing the price down.

    Do any of you Gurus out there know how a Corp planning a T/O might go about forcing the SP of a stock down?

    Putting aside short selling for the moment, wouldn't "they" have to dump shares they already own, which defeats the purpose. Alternatively do they think "they" are mobilizing an army of short sellers out there. I would love to hear anyone's thoughts on how this could be done and whether its as easy as those making these claims seem to believe?

 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.