Stock Market Manipulation

Market manipulation by large hedge fund companies and private equity firms is dangerous for average investors who invest with their hard earned income. Those big boys don't play by the rules. They make their own rules and can drive a stock price up or down. No wonder they're riding 'dirty' with their 7 series and enjoying their million dollar homes These companies are money making machines. Don't be the subject of such manipulation. You have to know what really goes on behind these companies and act accordingly based on your own research.

Market manipulation is when companies attempt to manipulate the stock prices in their favor. They do this because they have tons of money at their disposal. Some of their actions are in the gray area, but since there aren't any SEC regulations against it, there isn't anything that can be done about it. For example, hedge fund companies can 'mislead' the public by positoning themselves correctly in their own best interest. Let's say they want to short a stock. They'll call up various trading desks like Morgan, Merill, etc.. and buy puts. They hit up each of these popular brokerage houses and make big put orders creating an illusion that something is going on next week. Those brokerage houses will see these orders being placed. This information will soon leak out to the press and soon the public. Everyone will start selling the stock driving the price lower. In the end, those hedge fund companies will be able to buy the stock at a lower discounted price. They have knocked down the price of the stock in their favor.

It's all a game, especially if you have 20 million dollars of cash to manipulate the market in your favor. Any information that you read or hear on the news should be taken at face value. They are not an indication for you to place a buy or sell on a stock. The information you receive should be a basis for further research and investigation. This way, you won't be subject to the stock being manipulated...

Note : Please use this information at your own risk. The information was obtained from a public source.