Is this Illegal?

Discussion in 'Trading' started by newguy1, Aug 25, 2005.

  1. newguy1


    Say you had a group of traders, or just 1 trader in a room that had a lot of buying power...

    Now say I'm long a position. Then I ask everyone/or someone with massive bp to long the stock to increase the price. I don't think this is illegal.

    Now say you're a small group of traders. You're all long a position. Then you communicate with your buddy that runs a hedge fund and ask him to go long...big.

    Is this illegal?
  2. yes
  3. newguy1


    are both scenarios illegal, or just the hedge fund one?
  4. Total manipulation.
  5. Welcome to the market.
  6. Htrader

    Htrader Guest

    Absolutely not illegal. I have no idea what the others on this thread are saying.

    As a private citizen, as long as you are not trading on inside info, you can buy as many shares as you want. Make sure to file the proper sec paperwork if you go over 5% ownership.

    As a private citizen, feel free to tell whomever you want to buy the stock as well. Just don't spread false information. And if you are making the recommendation in public, such as on television, be sure to disclose your position to avoid conflicts of interest.
  7. newguy1


    thanks for the information.
  8. Agreed. It is only illegal if you are working for a brokerage firm and handling a customers order..

    ie. "Heh buddy (whsipers to roomate on the phone), I just got an order to buy X amout of a thin stock from Fidelity! if it goes through this price, and it just did. hop in and ride this wave baby!!"
  9. is it ethical is probably the better question.

  10. if it was me, and you did have a legit connection with a high firepower HF... I would probably give the guy who tells you what is going on (or visa versa) fat $$$ kickbacks.

    however... before I did so, I would place a few calls into the SEC, be very explicit (no, not your name or the HF name/guy) but be direct about what is ILLEGAL.

    screw "ethical."

    then only do what is NOT illegal according to the SEC. but then do it to the best of your ability - make money!!! :D
    #10     Aug 25, 2005