is this legal?

The same individual or group acts as the buyer and the seller of a transaction?

 

I don't think it's a matter of legality but more a matter of stupidity.
If you wanna buy your own stock, I don't think you need a broker.
if you are thinking about tricking the market, it probably won't work.

 

swoop, think hard.

I am sure someone can easily give me a definite correct answer by flash their memory of books

 

-Same individual would be painting the tape.
-Members of a group who share equal profits would be painting the tape.
-Members of a group whose profits are not commingled could be painting the tape if the trade was designed to manipulate the stock.
Although sometimes a trader will shift his position and risk to someone else in the group (negotiated trade)with a seperate account and trading interest.... this probably would not be considered illegal.

If the sole purpose of a trade is to manipulate and deceive with artificial volume.... it is illegal !!!!!!!!

Banker

 

Anyone who ever studied for these exams should know that this is a no-no.

That is all.

BigMike

 

BigMike is correct.

 

I do not work at an investment bank and probably never will, but I can still imagine numerous ways to bury the details behind such operations as to make them appear legal, when in fact they might not be.

What about brokerage houses with many unspecified internal trading accounts? Hook a few of theese to anonymous offshore owners. Then by law there would be no shared profits. If a single trader then is hired to manage these accunts discretionary, he can as he pleases switch funds back and forth. How to define and prosecute painting the tape in that circumstance?

In the world today with all the kinds of creative otc derivative-contracts it is not difficult to transfer formal obligations while retaining actual control.

How could possibly authorities keep track of nested deals and exotics? How many Quants are working for the sec versus investment banks?

 

it's illegal.....unless your are merrill or Citi and are pitching Enron and wocm to your clients to buy while you are selling...then it's ok

 

I wouldn't advise anyone to do that.It is a big NO-NO

 

could you please give detail reasons or quote please? otherwise simple no-no sound like you do not want us to do it while you or some special interest groups do it all the time. thanks.