awgee_IHB
New member
[quote author="acpme" date=1223597058]final thoughts on the subject after thinking about it overnight...
i see now where bv is coming from and in that sense, sure, market manipulation happens. but i realize we're arguing two diff things, or the same thing but on different scales.
i framed my argument on the question of whether market manipulation has any impact on the mkt as a whole -- whether the avg investor should be worried, esp after calgal noted her concern. the academic work on market manipulation, shorting (naked or not), and the such usually concludes that the fears are unfounded. short-term pricing anamolies happen, yes, even in large cap companies. like graphrix said, they're just price movements. and yes, with enough capital you might move the price yourself although mkt theory would say you can't do so profitably. and practicality would say you can't do it sustainably, intentionally, and legally before you get busted, blow up your fund, or both.
yes, some college kid on the motley fool forums can pump-n-dump a little known stock with not a lot of money. it does and has happened, but even offenses that small get caught and prosecuted. and yes, there are large funds out there that are probably operating and trading illegally. but certainly not to the extent where we can suspect far-flung, pervasive market manipulation by a hedge fund community -- comprised of thousands of funds managing trillions of dollars -- that's already being scrutinized with a watchful eye.
my point was always that this really isn't widespread enough to attract the worry of people who have money sitting in your typical stock portofolio or mutual funds, or even those who dabble in the occasional trade.
sorry the blew up like this. nothing personal. just a debate about a controversial subject, that's all.</blockquote>
Exactly. I could not agree more.
i see now where bv is coming from and in that sense, sure, market manipulation happens. but i realize we're arguing two diff things, or the same thing but on different scales.
i framed my argument on the question of whether market manipulation has any impact on the mkt as a whole -- whether the avg investor should be worried, esp after calgal noted her concern. the academic work on market manipulation, shorting (naked or not), and the such usually concludes that the fears are unfounded. short-term pricing anamolies happen, yes, even in large cap companies. like graphrix said, they're just price movements. and yes, with enough capital you might move the price yourself although mkt theory would say you can't do so profitably. and practicality would say you can't do it sustainably, intentionally, and legally before you get busted, blow up your fund, or both.
yes, some college kid on the motley fool forums can pump-n-dump a little known stock with not a lot of money. it does and has happened, but even offenses that small get caught and prosecuted. and yes, there are large funds out there that are probably operating and trading illegally. but certainly not to the extent where we can suspect far-flung, pervasive market manipulation by a hedge fund community -- comprised of thousands of funds managing trillions of dollars -- that's already being scrutinized with a watchful eye.
my point was always that this really isn't widespread enough to attract the worry of people who have money sitting in your typical stock portofolio or mutual funds, or even those who dabble in the occasional trade.
sorry the blew up like this. nothing personal. just a debate about a controversial subject, that's all.</blockquote>
Exactly. I could not agree more.
</blockquote>
