I need input on the rules of the market and the laws governing the market and stock prices. I have been following a company for a few years. While I do not own stock in the company I do have a round about interest in this company's product. The company has been a lead balloon for years and is desperately trying to keep afloat. I noticed a pattern in the stock price recently. Today I got my alert telling me there was a 5% change in the stock price (it is an OTC stock so the alert is very common). It showed a new all time low of $0.21 a share based on the sales of 2400 shares. Less than 5 minute after I got the alert I went to the financial page and found it had risen back up to it's $0.30 a share price based on the sale of 100 share. I know such movement is not uncommon with OTC stocks. What I do find interesting is that each time the stock starts to drop or reaches a new all time low someone purchases a small volume of share at the $0.30 price. One would think if the person was trying to acquire shares that he would purchase larger blocks at the lower price. Instead they seem to buy as few shares as possible at the elevated price. To me it seems as if someone is trying to artificially trying to elevate the stock price and prevent market forces from showing the real value of the stock. I had always though that such manipulation of the stock price artificially was not legal.
ncrdbl1 Wrote:I need input on the rules of the market and the laws governing the market and stock prices. I have been following a company for a few years. While I do not own stock in the company I do have a round about interest in this company's product. The company has been a lead balloon for years and is desperately trying to keep afloat. I noticed a pattern in the stock price recently. Today I got my alert telling me there was a 5% change in the stock price (it is an OTC stock so the alert is very common). It showed a new all time low of $0.21 a share based on the sales of 2400 shares. Less than 5 minute after I got the alert I went to the financial page and found it had risen back up to it's $0.30 a share price based on the sale of 100 share. I know such movement is not uncommon with OTC stocks. What I do find interesting is that each time the stock starts to drop or reaches a new all time low someone purchases a small volume of share at the $0.30 price. One would think if the person was trying to acquire shares that he would purchase larger blocks at the lower price. Instead they seem to buy as few shares as possible at the elevated price. To me it seems as if someone is trying to artificially trying to elevate the stock price and prevent market forces from showing the real value of the stock. I had always though that such manipulation of the stock price artificially was not legal.
"Penny" stocks are rife with manipulation.
Unless you know for a fact that they have good products and are directly familiar with the quality of the management team, I'd stay away from that type of play...too many unknowns to be goofing around with an illiquid security.
GermantownTiger Wrote:ncrdbl1 Wrote:I need input on the rules of the market and the laws governing the market and stock prices. I have been following a company for a few years. While I do not own stock in the company I do have a round about interest in this company's product. The company has been a lead balloon for years and is desperately trying to keep afloat. I noticed a pattern in the stock price recently. Today I got my alert telling me there was a 5% change in the stock price (it is an OTC stock so the alert is very common). It showed a new all time low of $0.21 a share based on the sales of 2400 shares. Less than 5 minute after I got the alert I went to the financial page and found it had risen back up to it's $0.30 a share price based on the sale of 100 share. I know such movement is not uncommon with OTC stocks. What I do find interesting is that each time the stock starts to drop or reaches a new all time low someone purchases a small volume of share at the $0.30 price. One would think if the person was trying to acquire shares that he would purchase larger blocks at the lower price. Instead they seem to buy as few shares as possible at the elevated price. To me it seems as if someone is trying to artificially trying to elevate the stock price and prevent market forces from showing the real value of the stock. I had always though that such manipulation of the stock price artificially was not legal.
"Penny" stocks are rife with manipulation.
Unless you know for a fact that they have good products and are directly familiar with the quality of the management team, I'd stay away from that type of play...too many unknowns to be goofing around with an illiquid security.
I have nooooo plans in investing in this company what so ever. I will not mentionn the name of the company, i will just they are are a well known Amrican grass roots racing series. One that even some non racing fans may have heard of.
I have NO IDEA about the stock market but have heard that penny stocks CAN be a good way to break into it. Whats your take on that?