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<blockquote data-quote="Ponyroper" data-source="post: 89447" data-attributes="member: 423"><p>It is possible to manipulate the price of a stock somewhat in smaller companies but it has become more difficult in recent years because the Feds have gotten better at tracking the market and they will rain holy hell down on traders using inside information if they catch them. Influencing the value of large companies like Apple is very difficult because of the sheer number of shares outstanding. Very few investors have enough money to buy enough shares to make a blip on the screen. The strategy now is to start a rumor-good or bad- and play the reaction. That's where people with inside information have the best chance to profit if they don't get caught. Years ago, before market got so huge and market valuations got so high a few large investors/speculators were often able to influence prices more easily. Case in point, the Hunt Brothers nearly cornered the market in silver back in the seventies by buying up silver and silver futures. People who had sold silver futures had to even up their positions by buying back a contract or actually delivering the silver to the contract owner. Since the Hunts held most of the silver and the futures contracts they forced the price of silver up from $10 an oz. to nearly $50 an oz. before reselling the contracts. They made millions but got caught in the act and were prosecuted. The fines and lawsuits ended up bankrupting them. I'm sure many crooks have gotten away with manipulating the market but it's tougher now than it used to be.</p></blockquote><p></p>
[QUOTE="Ponyroper, post: 89447, member: 423"] It is possible to manipulate the price of a stock somewhat in smaller companies but it has become more difficult in recent years because the Feds have gotten better at tracking the market and they will rain holy hell down on traders using inside information if they catch them. Influencing the value of large companies like Apple is very difficult because of the sheer number of shares outstanding. Very few investors have enough money to buy enough shares to make a blip on the screen. The strategy now is to start a rumor-good or bad- and play the reaction. That's where people with inside information have the best chance to profit if they don't get caught. Years ago, before market got so huge and market valuations got so high a few large investors/speculators were often able to influence prices more easily. Case in point, the Hunt Brothers nearly cornered the market in silver back in the seventies by buying up silver and silver futures. People who had sold silver futures had to even up their positions by buying back a contract or actually delivering the silver to the contract owner. Since the Hunts held most of the silver and the futures contracts they forced the price of silver up from $10 an oz. to nearly $50 an oz. before reselling the contracts. They made millions but got caught in the act and were prosecuted. The fines and lawsuits ended up bankrupting them. I'm sure many crooks have gotten away with manipulating the market but it's tougher now than it used to be. [/QUOTE]
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