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Stock Price (Market) Manipulation
dunkang
#1 Posted : Tuesday, November 27, 2012 1:40:47 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
This is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of a security.

Examples

1. Pools:
"Agreements, often written, among a group of traders to delegate authority to a single manager to trade in a specific stock for a specific period of time and then to share in the resulting profits or losses."

2. Churning:
"When a trader places both buy and sell orders at about the same price. The increase in activity is intended to attract additional investors, and increase the price.

3. Runs:
"When a group of traders create activity or rumors in order to drive the price of a security up."

4. Ramping:
"Actions designedto artificially raise the market price of listed securities and to give the impression of voluminous trading, in order to make a quick profit."

5. Wash trade:
"Selling and repurchasing the same or substantially the same security for the purpose of generating activity and increasing the price"

6. Bear raid:
"Attempting to push the price of a stock down by heavy selling or short selling."

courtersy of wikipedia
Receive with simplicity everything that happens to you.” ― Rashi

S.Mutaga III
#2 Posted : Tuesday, November 27, 2012 1:50:34 PM
Rank: Member


Joined: 3/26/2012
Posts: 830
Take a look at sasini...the price range today is 11.5 - 12.5...i have noted the huge daily range on this stock over the last 3 weeks...something might be cooking.I have a feeling someone is either trying to push the price up or down artificially...the counter closed at 11.9 yesterday.Who in his/her right state of mind would sell at 11.5 in a bull market?beats logic
A successful man is not he who gets the best, it is he who makes the best from what he gets.
mkeiyd
#3 Posted : Tuesday, November 27, 2012 2:08:53 PM
Rank: Veteran


Joined: 3/26/2012
Posts: 1,182
S.Mutaga III wrote:
Take a look at sasini...the price range today is 11.5 - 12.5...i have noted the huge daily range on this stock over the last 3 weeks...something might be cooking.I have a feeling someone is either trying to push the price up or down artificially...the counter closed at 11.9 yesterday.Who in his/her right state of mind would sell at 11.5 in a bull market?beats logic


How is it possible to being doing the two at the same time? Wouldn't it be better to try one thing at a time?
S.Mutaga III
#4 Posted : Tuesday, November 27, 2012 2:27:09 PM
Rank: Member


Joined: 3/26/2012
Posts: 830
mkeiyd wrote:
S.Mutaga III wrote:
Take a look at sasini...the price range today is 11.5 - 12.5...i have noted the huge daily range on this stock over the last 3 weeks...something might be cooking.I have a feeling someone is either trying to push the price up or down artificially...the counter closed at 11.9 yesterday.Who in his/her right state of mind would sell at 11.5 in a bull market?beats logic


How is it possible to being doing the two at the same time? Wouldn't it be better to try one thing at a time?

it appears to be down...someone is deliberately supressing the price...
A successful man is not he who gets the best, it is he who makes the best from what he gets.
eboomerang
#5 Posted : Tuesday, November 27, 2012 2:33:03 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
My observation is that the Kenyan market is far from efficient, it is until CMA gets serious with managing the market and strictly enforcing governance across companies.

It would not be a surprise to find that some senior managers have connections to trading houses.
dunkang
#6 Posted : Tuesday, November 27, 2012 2:47:23 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
If you don't mind, just observe some share offer prices many mornings. Most of them are lower than previous day's lowest sell prices and even lower than bid prices whilst demand outstrip supply.

The other problem is information leakage favouring clear insiders.
Receive with simplicity everything that happens to you.” ― Rashi

Jamani
#7 Posted : Tuesday, November 27, 2012 2:59:08 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
My observation, lunch hour records the highest disparities
sparkly
#8 Posted : Wednesday, November 28, 2012 6:51:35 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
dunkang wrote:
If you don't mind, just observe some share offer prices many mornings. Most of them are lower than previous day's lowest sell prices and even lower than bid prices whilst demand outstrip supply.

The other problem is information leakage favouring clear insiders.


The nse is automated, bids and asks are matched and you have a sale. If you use the realtime system like CFC OST, you can actually view and snatch up bids and asks instantly.

If you give your orders to the broker , he will enter it among others manually then send to the automated system for queuing. I think some brokers do this twice a day, morning and around 12 noon.

If you fear manipulation, maybe you should get a broker with a realtime platform.
Life is short. Live passionately.
Mukiri
#9 Posted : Wednesday, November 28, 2012 8:24:11 AM
Rank: Elder


Joined: 7/11/2012
Posts: 5,222
eboomerang wrote:
My observation is that the Kenyan market is far from efficient, it is until CMA gets serious with managing the market and strictly enforcing governance across companies.

It would not be a surprise to find that some senior managers have connections to trading houses.


I wouldn't be surprised if CMA is part of the cartel. Its a sad state of affairs, man eat man market. Just some time back the price of dollars was artificially pushed up, for someone to make a killing at the expense of a whole country.

Proverbs 19:21
maka
#10 Posted : Wednesday, November 28, 2012 11:00:11 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
sparkly wrote:
dunkang wrote:
If you don't mind, just observe some share offer prices many mornings. Most of them are lower than previous day's lowest sell prices and even lower than bid prices whilst demand outstrip supply.

The other problem is information leakage favouring clear insiders.


The nse is automated, bids and asks are matched and you have a sale. If you use the realtime system like CFC OST, you can actually view and snatch up bids and asks instantly.

If you give your orders to the broker , he will enter it among others manually then send to the automated system for queuing. I think some brokers do this twice a day, morning and around 12 noon.

If you fear manipulation, maybe you should get a broker with a realtime platform.

...@dunkang most of the definitions you have put across cannot be applied to the Kenyan market coz the traded volume is sooo low,take churning for example this is mostly done by high frequency traders,its definetly market abuse pap...@sparkly automation yes it is automated but it depends how the system is set up by those guys from singapore if am not wrong...lets take the example of the LSE Sets,the order book opens at 7.50 but the system can only be used to input orders in the ten minutes to 08:00.No execution takes place then at 8 an uncrossing algorithim is run to establish the base price,from then orders can be input by the brokers having in mind the base price you cannot input an order thats wayward to the base price...thts the difference wth the kenyan system jst log onto rich.co.ke and look at the spread btwn bid price and offer price its jst crazy...
possunt quia posse videntur
Mainat
#11 Posted : Wednesday, November 28, 2012 11:01:20 AM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
I've experienced front-running of orders severally even this yr. Its especially prevelant when the NSE iko down for a while.
Sehemu ndio nyumba
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