Replies to post #336193 on Digital Brand Media and Marketing Group Inc (DBMM)

[Stock_Barber]

Are you really too dense to see the time of those trades? It is the time of the trade, not the volume!

"Marking The Close" is a technique of purchasing a security at the very end of the trading day often within minutes of the close of trading at a significantly higher price than the security’s current traded price. The purpose is to raise the security’s closing price, thus making it appear to be of higher value than it actually is. The manipulation of a transaction in order to give a false, misleading or artificial appearance of activity in a stock improperly influences the market price and is illegal. Yet, some traders continue to engage in such practice and pay the price.

How Does Marking the Close Work?
Typically, this manipulation involves artificially influencing the price of a security at the market’s closing time. Here’s how it works:

Objectives: Individuals typically involve themselves in this practice for their own reasons. They might want the stock to close at a particular price to hit certain goals, or to influence their investments like options or derivatives contracts. However, it’s important to understand that this manipulation benefits the individual and is directly tied to the closing price of the security.

Volume: To execute this strategy successfully, traders or investors looking to mark the close will place a significant volume of buy or sell orders for the targeted security shortly before the market’s official closing time. These particular orders are usually strategically placed at or near the prevailing closing price.

Timing: Timing is crucial in this manipulation as well. These orders are typically executed in the final moments leading up to the market’s closing time. This makes it challenging for other market participants to react or counteract the manipulation.

Impact: The key to marking the close often lies in the sheer volume of orders. By flooding the market with a high volume of buy or sell orders, the manipulators can create an artificial imbalance between supply and demand, pushing the closing price in their desired direction. If successful, the manipulators can influence the closing price to close at the level they desire, even if it doesn’t accurately reflect the security’s fair value based on market supply and demand dynamics.

Marking the close is generally considered market manipulation and is illegal in most financial markets. Regulatory bodies closely monitor trading activities to detect and prevent such manipulation. Violators can face penalties, including fines, trading restrictions, and legal actions. Regulatory authorities like the Financial Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC), employ various tools and surveillance techniques to identify unusual trading patterns or orders placed near the market close. They also maintain rules and safeguards to prevent and deter market manipulation, ensuring fairness and integrity within the market.