Is Stock Market Manipulation Illegal?

Natural Stock Price Fluctuations

Stocks will fluctuate based on the company’s performance and functional efficiency. Global and agricultural catastrophes, economic conditions, decisions made by political authorities and big banks will also cause stocks to increase or decrease. The average investors and stock traders along with the media are also major factors.

Media Manipulation Continue reading “Is Stock Market Manipulation Illegal?”

What Is Stock Manipulation?

Many investors believe that short sellers are the only ones that affect the stock markets price fluctuations, but big buyers also affect it, along with every other investor in the stock market!

Bullish Market Manipulation

Bullish Manipulation happens when traders/investors with huge buying power purchase an enormous amount of shares of a company’s stock. When a bullish investor wants to make some easy cash or they see the stock heading in the opposite direction of their entry price, they will buy a very large amount of shares. This increases the stock price dramatically in a short period time. The same rule applies when investors are selling a massive amount of shares.

Bearish Market Manipulation Continue reading “What Is Stock Manipulation?”

What Are Penny Stocks?

Penny stocks, also known as micro-cap stocks, trade under $5 per share. Their price fluctuations tend to increase and decrease very rapidly. The high volatility, cheap price, and random spikes of these stocks may cause traders to become fixated on the reward, causing a get rich quick mentality which can be devastating to the trader because of the high risk these stocks bring with them.

 

Why Are Penny Stocks Risky Investments? Continue reading “What Are Penny Stocks?”