Hey... that's naughty!!
That was my first reaction this afternoon when I saw one of my share's price (REX) went down nearly 15% with a very volume traded. Last look, there was 10 (yes, 10 singe shares) ask (selling) for $1.25. On the second sell position was some thousands of share asking for $1.35.
So, the share price was driven down more than 10 cents for a very small volume.
How they play this game?
I noticed that small caps companies go down more in bear markets than their large cap rivals. I believe this is part of the reason. Not because they are inherently worse stocks or that their valuations are more inflated but because they can kill the price momentum with just a few 100 share blocks.
Trade Based Manipulation
I read the other day about share manipulation. I believe this one is called Trade based manipulation (there's another one called Disclosure based manipulation).
Trade based Manipulation is the buying or selling of a security by a person which misleads or deceives other participants about the value or trading volume of that security.
(OMG!!.. The indicative price fro REX is now $1.40, far cry from 1.22 a few minutes ago..I should have bought some, but a bit nervous about it as I have quite a large cash invested on REX already... oh what a mistake!!)
Sorry, I have to go... will be back with the manipulation topic.
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