yeah,the history of the vse is full of these stories from the good ol days.just need to get on the top volume in the paper and magically the stock gets attention.
I actually did this a few times (before I found out it was illegal). I had an account with IB, and another one with a firm that charged me $20 per trade. Let's say I was long 2000 share of a low volume stock in my per ticket broker. If I tried to sell my position, it might take several fills, costing me a ton of money in commissions. So I would sell my position in that account, to myself in my IB account, then sell my IB position in however many fills it took. I didn't do it that often, and I was always scared there was a hidden order somewhere that would superced my order. I don't think I ever got burned.
the reason they don't alow penny stocks is belately they have disocvered that many of its members are novice traders. and probably require protection. what is the name of this business writer.we could all probably learn from him,
"So I would sell my position in that account, to myself in my IB account, then sell my IB position in however many fills it took" from toonce if you sold in your IB account you need to buy to close your position.
Why? what profit could you gain? Whatever you win on account A you lose to account B, and you also lose commisions.
This practice is followed from someone having a controlling interest on the stock or an agreement with those who have controlling interest on the stock. The upward movement begins and the momentum plus the trading volume plus the rumors attract small speculators in the stock and the distribution begins. Bottom line transactions cost are the advertising expenses for creating the game.
Yep, that is the way the game is played. Get those momentum investors interested in the stock and let them take it up.
this thread covers the same subject as a previous thread. what is interesting is that this new thread presents in some ways a new perspective on the subject. the conclusion is however the same. the practice seems to be illegal.
i remember seeing this set of er2 trades on globex in may of last year. http://www.elitetrader.com/vb/showthread.php?s=&postid=743764&highlight=market+wild#post743764 several >400 lots popped off in rapid succession on a holiday friday afternoon right before close. were these prearranged? they seemed to be since there was almost noone else trading and it's not like they sat on the spread or anything maybe it involves an offshore entity in order to spoof or cross own trades with the appearance of being unrelated accts? wouldn't surprise me if that's prevalent