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Re: None

Tuesday, 03/13/2007 9:45:53 PM

Tuesday, March 13, 2007 9:45:53 PM

Post# of 75400
I found this on the Money 101 board. Seems very similar to what we have seen in RLTR the past two days.

http://www.investorshub.com/boards/board.asp?board_id=7489

Manipulation:

This is a device used more by Market Makers (MMs) than others, but by no means, limited to them alone.

MMs rank right behind bankers, lawyers, politicians, and many CEOs.

They have the ability to create what appears to be volume and increase in pps (price per share), giving the false impression that a stock is going up in value. What is to be closely watched for is whether it is a sustained increase in pps, or only temporary.

They have the ability to 'over accentuate' a 'run' giving the impression the issue is going up quickly. Often, they will naked short shares at the HOD (high of day) only to buy them back (from you) on the retrace. They understand terms like 'weak hands', 'panic', 'fear', and have no qualms of using their skills to make themselves more money at your expense.

No one makes more money in the stock market, than MMs. Usually, it's YOUR money, they make!

MMs have an arsenal of tricks they use, of which would be impossible to outline them all. Other common ones are signals. Often, they will use 100 share trades to take a pps up or down, depending on what their desire is. If they have shares they want to sell, they will try to 'take it up', giving the appearance of a pps going up in value. Conversely, when they need shares, they 'take the pps down', on 100 share trades, hoping to 'shake weak hands' loose of their shares with the fear of a plumetting pps.

Another form of manipulation is performed by unscrupulous investors or investment bankers, usually by 'bidwhacking' a pps down, so as to buy more shares at lower prices, whether on the open market or thru private placements. (A private placement is when a company sells shares directly to an investor, as opposed to the open market).

Short Selling, Naked Short Selling (NSS):

Short selling is done with actual shares that legally exist in certificate. This practise is usually done when a stock is considered overvalued, and a 'short' expects the pps (price per share) to decline. The short is borrowing someone's shares (possibly even yours) at whatever price, from a broker who has such shares, sells them to the market, and after the price has declined, the shorter buys them back (cover's), pays the broker back, and keeps the excess, as profit.

Naked Short Selling (NSS) is done with shares that do NOT exist, in no form whatsoever, and is done only by Market Makers (MMs). This is very comparable to counterfeiting, except without the need to even have printers. Because naked shorted shares do not exist in any form whatsoever, they cannot even be traced by the SEC. It is also a form of dilution, and in the broadest sense, compounded dilution at it's worst, and furthermore, not even on anyone's books.

Naked short selling was created (by the SEC, no less) to allow MMs to 'maintain an orderly market', though it's intention has been ridiculously abused (by MMs) to the point of criminality. Worse yet, due to 'loopholes' in the laws that MMs are able to circumvent, rarely does prosecution/penalties ever occur.

Any thoughts, please feel free to comment.

Ant