2 ms·
Let's say an event occurs and you know a particular stock will go up 20% but you pump enough money into the stock to make the stock go 30% and then you let othe
by gingabriska 7y ago
Let's say an event occurs and you know a particular stock will go up 20% but you pump enough money into the stock to make the stock go 30% and then you let others chase the stock and publish news about this market move through media houses / content spamming / fake accounts. Then you short the stock once you get the desired movement and finally you remove the money from this stock so it goes into free fall and all people start selling. Finally, you close the short position when you notice there is no room for stock going further down. Now let's say stock ended up at 10% so you buy more stock so it goes 15% just below what you initially predicted.
Assuming you've billions to move the stock.
Why such strategy will not work?
- anastalaz 7y agoSuch a strategy does work and it's also illegal. It is called market manipulation specifically 'pump and dump' https://en.wikipedia.org/wiki/Market_manipulation https://en.wikipedia.org/wiki/Market_manipulation