Daytrader Charged !!!!!!
- Thread starter taodr
- Start date
Precisely I am talking of used copies 
Quote from harrytrader:
years ago I met a french financial journalist (I mean what I am saying concerns FRENCH market if you wanna guess for US market...) who interviewed a guy and this guy has told him the truth: During the Internet Bubble a broker in charge to "animate" a stock (they are in fact officially paid to do so and are equivalent to specialists of Nyse) just allies with others brokers to create a virtual pool - virtual since officially it is forbidden - they increase the price and then one day they will decide alltogether to drop it. They use the same scheme as below with a difference: they are several to do so and since nobody can accuse them of colliding without proof - how can you prove if you are not in the confidence huh ? - well it just happens without the general public suspecting it. But in the fact it is the same manipulation fraud that the Lee below: if he was using a virtual pool instead of doing all the work himself maybe he wouldn't have been catched.
Had this in my archive : same kind
URL: http://www.blonnet.com/2002/01/04/stories/2002010401980300.htm
NEW DELHI, Jan. 3
STOCK broker, Mr Ketan Parekh, who is in the centre of the 2001 stock scam, has denied that his broking firms were involved in circular trading. However, he was reported to have admitted to the Joint Parliamentary Committee (JPC) that his firms had simultaneously bought and sold shares of the same companies.
In a written deposition before the JPC here on Thursday, Mr Ketan Parekh denied that he had any intention of manipulating or committing irregularities like circular trading and short sales. The rise in stock prices during the early part of 2001 was in tune with the global trends and the large-scale purchase and sale of shares were done in good faith and ``in the interest of the nation''.
The aim was to make the Indian stock markets attractive and to make an impact in the global market, where investment could be profitable, Mr Parekh told the committee, according to the JPC Chairman, Mr Prakash Mani Tripathi.
The primary charges against Mr Parekh relate to market manipulation. He is alleged to have developed a nexus with the promoters of some prominent companies for creating an artificial market in certain scrips, which amount to market manipulation.
Mr Parekh also admitted that he had overdrawn Rs 888 crore from the Madhavpura Cooperative Bank. His borrowing had far exceeded his limit of Rs 205 crore and he was unable to repay the amount, as he was trapped in a vicious cycle due to the payment crisis in the market.
We tell every new trader to stay away from the after-hours market anyway...and this is just another reason to support our decades old philosophy.
I usually give the example of Institutional Trading from the old days....and this shows that even small time players can take advantage of those foolish enough to take part.
Don
Don,
What is your take on the difference between this case and "the flipper" in the Eurex? That happens during trading hours but imho it is manipulation too and is also creating a false picture of the market.
(See the post by Quiet1 on: http://www.elitetrader.com/vb/showthread.php?s=&threadid=28954&perpage=6&pagenumber=20 )
Thanks
Marinus