Posted On: 10/04/2013 12:54:09 PM
Post# of 36729
Re: AmericanSavage #8028
Stock price manipulation, though common among pinkies, is illegal under Section 9(a)(2) of the Securities Exchange Act of 1934.
Here's one person's take:
Driving stock price lower
This scheme is usually orchestrated by savvy online message board posters (aka, bashers) who make up false and/or misleading information about the target company in an attempt to get shares for a cheaper price. This activity, in most cases, is conducted by posting false, derogatory and libelous statements on multiple public forums.
The perpetrators often work on behalf of unscrupulous individuals, entities or firms who hold convertible notes that convert for more common shares the lower the bid or ask price is. The lower the bashers can drive a stock price down by trying to convince shareholders they have bought a worthless security, the more shares these individuals, entities or firms receive as compensation.
After the stock conversion is complete and common shares are issued to the consultant, attorney or other party or firm exercising convertibles, the bashers change themselves into pumpers and use an illegal Pump & Dump scheme to liquidate their ill gotten shares.
Here's one person's take:
Driving stock price lower
This scheme is usually orchestrated by savvy online message board posters (aka, bashers) who make up false and/or misleading information about the target company in an attempt to get shares for a cheaper price. This activity, in most cases, is conducted by posting false, derogatory and libelous statements on multiple public forums.
The perpetrators often work on behalf of unscrupulous individuals, entities or firms who hold convertible notes that convert for more common shares the lower the bid or ask price is. The lower the bashers can drive a stock price down by trying to convince shareholders they have bought a worthless security, the more shares these individuals, entities or firms receive as compensation.
After the stock conversion is complete and common shares are issued to the consultant, attorney or other party or firm exercising convertibles, the bashers change themselves into pumpers and use an illegal Pump & Dump scheme to liquidate their ill gotten shares.
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