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Re: CherryTree1 post# 367096

Sunday, 04/04/2021 1:41:10 AM

Sunday, April 04, 2021 1:41:10 AM

Post# of 716104
Back in the days before online brokers you would receive an order confirmation in the mail. If you looked at the top of it the trade was marked either long or short. So if both confirmation receipts were for long purchases what's the difference. A trade marked long is a principle trade. A trade marked short is an agency trade. A principal trade is not an exchange purchase but an independent investor paying the broker to promote and sell his block. The corporation that issued the stock is not allowed to engage in principal trades. When one of those big investors pays $50,000,000 to a corporation they get a block of let's say 5,000,000 shares to market. They will form a syndicate of participating members (boiler rooms) to pump the stock. The branch manager will walk into the room and announce a contest 1st prize is an Eldorado 2nd prize is a set of steak knives third prize your fired. Depending on the size of the syndicate 100s of boiler rooms will start selling the stock and as soon as the stock has been progressively walked up and the block has been sold the Angel investor will short the stock. This huge short sell is done on the exchange and will cause the stock to plummet Many months will have passed and like clockwork another shelf offering will be announced with a 20% discount and now the shorts can be covered. During this in term the massive short sell is naked. With a principal trade the commission is the difference between the bid and the ask plus any other cash payments contracted. An agency trade is exchange traded and are always marked short. This is when you call your broker and ask to place a trade and are charged a commission. The broker then sells short and covers for additional profits(hopefully). If they can't fill at a lower price they can fill off the exchange third market. It's all a grand illussion! As time goes on and a president is about to leave office they will announce a $5 trillion dollar gift to the bankers and the media won't even question it. You'd think there'd by a Senate Sub Committee at least. You see there all in on it. But in the end business are funded and the world goes round and round. After all it's an entire economy based on a fiat currency anyway.
Volume:
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Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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