Can you report price manipulation?

[agro]

i am watching one stock at the moment and have noted that a couple large sellers make their orders which scares the market

once successful, there appears to be a large seller,

often these two pull out and put them back in at either lower or higher prices

can you report stuff like this?? cause surly it shouldn't be allowed?

 

[surfingman]

You are allowed to do this.

It could be a good strategy if you want to buy into a stock and you have plenty of funding to play with.

 

[prawn_86]

Im no legal guru but here is my understanding:

You can put up sell orders for whatever you like. If you spook other holders thats their fault not yours (theoretically).

It only becomes illegal (as far as I know) if you have sell orders in, but then are also buying at a lower/pushed down price.

But good luck trying to prove that....


EDIT - Just moved thread to beginners lounge as I think it would be good info for those starting out

 

[agro]

thought it was a tactically thing to do..!

it works well too and people get sucked in..

whenever i see a large seller,, usually an indication someone wants to buy in at a cheaper price imo..

good work

 

[sam76]

thought it was a tactically thing to do..!

it works well too and people get sucked in..

whenever i see a large seller,, usually an indication someone wants to buy in at a cheaper price imo..

good work

Or an insider knows of imminent bad news.

 

[meganut]

You can put up sell orders for whatever you like.

Even if you don't actually own any shares in that company?

So could I try and sell 500,000 shares in RIO for $4 above the market price even if I didn't actually have 1 single RIO share?

 

[Aviator33]

Even if you don't actually own any shares in that company?

So could I try and sell 500,000 shares in RIO for $4 above the market price even if I didn't actually have 1 single RIO share?

Only if you have the ability to short sell Meganut (and enough capital). Maybe check out the other thread here:
Shorting - How do you do it?

 

[cuttlefish]

traders will frequently have orders in both the sell and buy queues simultaneously. Any sell order in the queue is entitled to be hit and that is the risk that is taken by a trader if they place a large order in the sell queue that they don't expect to get filled.

Most brokers won't allow a sell order to be placed if the order placer doesn't hold enough stock to match the sell, unless its an explicit short sell.

 

[Aviator33]

Hmmmm, just found this on the ASX web site....

Market manipulation
Examples of market manipulation for which ASX Markets Supervision monitors include:
Price manipulation
Placing buy or sell orders (or both) into the market in order to change or maintain the price of a stock. The motives for attempting to do this vary:

• To increase the value of a position in the stock for accounting or portfolio valuation purposes;
• To be able to issue new shares at a higher price; or
• To cause such a price rise that other investors are attracted to the stock, creating additional demand and higher prices that the manipulator can sell into.

.....???

 

[prawn_86]

Even if you don't actually own any shares in that company?

So could I try and sell 500,000 shares in RIO for $4 above the market price even if I didn't actually have 1 single RIO share?

Sorry, i should have made this clear.

You can put a sell order in for as much as you like, providing you already own that amount of stock.

If you are looking to short its different, as mentioned above.