Market

Finance allah shmoop What is market manipulation All right people

Ah sleazy hedge fund trader guy with a huge friendly

smile has been shorting shares of a vaguely known tech

name Thingamabob thingamabob Dot com Yeah that's it and yeah

even they don't know what this thing does Well heggie

mk sludge is betting the shares will go down soon

and he'll profit from the short sale Well they aren't

going down so he's panicking Well he just jumps into

action calling with a disguised voice a bunch of financial

journalists who have next to no training in finance He

whispers to them about fraud in the reporting of the

books of thing He finds an ident him to a

cod ical to an addendum on page four hundred eighty

two on their filings from their uh who's becca stan

office And then he whispers money laundering being unschooled in

hungry for a headline The journalists have no idea what

to dio who to call to actually get a real

reading on this issue S o they do what most

financial journalist d'oh which is just vomit letters on their

blogged writing about potential fraud at this thing All right

Well about eight seconds after the headlines start hitting the

tape well and they come from a four different journalists

So those headlines must be accurate right Well things doc

it's cut in half Heggie mix sludge covers is short

by buying back the shares he shorted and he makes

a fortune and the market has been perfectly manipulated illegally

Yeah you can't do this people This is not legal

and it's just one illustration of tons of market manipulation

schemes out there Other schemes Well today an obvious one

lives inside all the social media world where fake news

can be planted anonymously with few if any repercussions for

the violator if you can even find him Another more

nefarious scheme involves collusion of that quote respected unquote wall

street sell side analysts who when filled with truckloads of

negative data about a company voluntarily given to him by

heggie mk sludge is finally swayed under the promise and

boss pressure of massive commission revenues from that hedge fund

teo write something negative That is if the sell side

analysts will only accede and write a very highly critical

report of the company confirming at least a few points

Made by the hedge fund that things were not so

rosy While then the remaining legions of wall street penguins

will all follow suit jumping into the waters of cell

mortimer cell they'll crater the stock and let the hedge

fund make a fortune again covering his short Well the

same goes in the other direction of course with a

little whisper that well google wants to buy them for

one hundred eighty two dollars a share I heard this

in the the restroom there well in the real world

there's a close knit club of market manipulators you know

birds of a feather and they all tend to live

eventually right here f y i visiting hours are from 00:03:04.368 --> [endTime] ten to four tuesdays and fridays