Place and cancel orders to manipulate stocks?

Discussion in 'Trading' started by crgarcia, Apr 27, 2007.

  1. It is said that market makers -be them human or computers-, set prices based on orders yet unfilled.

    If some large group of financial institutions, were to place massive limit orders to buy a stock, with price below current price, so the orders wouldn't be filled yet.

    Would this affect the stock?

    Would it go up or down?
    For one thing it suggests many people is willing to buy, rising prices.
    But since the orders are so low it could also lower prices.