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Gold/Mining/Energy : Unitec Int. Controls Inc.
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To: Richard Saunders who wrote (108)1/22/1998 12:53:00 PM
From: John B. Smyth  Read Replies (1) of 856
 
Down ticking is when someone completes a trade shortly before the close of the market (in concert with the buy and sell) in an attempt to make the stock appear to be less than the average trade. For example if all the trades (volume of 50,000) are in the $0.50 to $0.55, but it closes at $0.40 on 1,000 shares, the stock shows a close of $0.40 and could be down $0.10 depending on the previous day trading. This is a method a party might use (at small cost) to try to discourage buying and drive the price down in order to accumulate a lot of stock a low price, or in the case that a stronger party is trying to negotiate with a weaker party to purchase a large block of stock.

In contrast, up ticking is when someone completes a trade shortly before the close of the market (in concert with the buy and sell) in an attempt to make the stock appear to be increasing in value. For example if all the trades (volume of 50,000) are in the $0.50 to $0.55, but it closes at $0.75 on 1,000 shares, the stock shows a close of $0.75 and could be up $0.25 depending on the previous day trading. This is a method a party might use to try to artificially drive the price up in order to unload a lot of stock a high price.

Both are highly illegal manipulation of stock, and when done is usually well hidden and hard to trace as it involves numerous parties to avoid detection. Reputable brokers would not permit there services to be used for these purposes.

Three brokers called me last summer to inquire whether I knew why the stock was closing significantly lower than the normal trades and suggested I look into the matter. I have not had a lot of experience in the market and had never heard of this before. After reviewing the information provided I sought counsel and subsequently contacted the VSE.
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