LIS 0.00% 13.0¢ li-s energy limited

There are several reasons why a company might want to push its...

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    There are several reasons why a company might want to push its stock price down on purpose, although it's important to note that such actions are generally considered unethical and potentially illegal. Some of the motivations behind manipulating a stock price downward include:

    1: Short-selling profits: In some cases, a company or individuals associated with the company may seek to push the stock price down in order to profit from short-selling. Short-selling involves borrowing shares of a stock and selling them with the expectation of buying them back at a lower price in the future. By artificially depressing the stock price, these individuals can profit from the decline.

    2:Stock buyback: Companies may intentionally push their stock price down in order to facilitate a stock buyback program. When a company buys back its own shares, it reduces the number of shares outstanding, which can increase the value of the remaining shares. By pushing the stock price down temporarily, the company can buy back shares at a lower price, potentially benefiting shareholders in the long run.

    3: Options manipulation: Companies or individuals may manipulate the stock price down to profit from options contracts. For example, if someone holds put options (which increase in value as the stock price falls), they may seek to artificially lower the stock price to profit from their options positions.

    4:Tax benefits: Depressing the stock price can have tax benefits for executives or shareholders who receive stock-based compensation. Lower stock prices can reduce the tax liabilities associated with such compensation.

    5: Mergers and acquisitions: In some cases, companies may push their stock price down in anticipation of a merger or acquisition. A lower stock price can make the company a more attractive target for acquisition or merger, potentially leading to a higher premium for shareholders.It's important to emphasize that manipulating stock prices is illegal and unethical. Regulatory bodies such as the Securities and Exchange Commission (SEC) in the United States closely monitor for market manipulation and take enforcement actions against individuals or entities engaged in such activities. Investors should be wary of companies engaging in suspicious activities that could artificially influence stock prices.

    In case of LIS, IMO, it fits to 2 & 5.
 
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