Increased overall demand worldwide is a difficult thing to prove... especially when a stock goes up. People say that MM games don't happen on Nasdaq because of restrictions. When you look at the rulebooks, the restrictions aren't that much more on the NASD than they are on the OTC, just the OTC is less monitored. I'm sure there has been market manipulation in the past, but with this many vocal people on a group such as SI buying into any given stock, it's easy to accuse the MMs of market manipulation. I did it in the past with NETZ(now ZULU). I think it's because serious investors(the ones with the hard core cash) stay away from penny stocks. That's why TokyoJoe is so successful. He doesn't concentrate on mm manipulation. He has a bunch of investors with a lot of money buy in/buy out.
And he doesn't mess around.
You'd be surprised as to what exactly is the demand for any given stock. A professor here explained to me what the MMs do in terms of dropping/raising bid/ask prices. If there's a huge buy order, the price will skyrocket. If there's a huge sell order, the price will drop with absolutely no volume.
And yes, while market manipulation has taken place in the past, I will guarantee you that the supply/demand curve dictates the majority of the prices on the OTC.
If manipulation is obvious and a complaint is filed, Nasdaq will read the complaint and do a preliminary investigation(nothing really but a look/see). If they see nothing wrong, then life goes on. If the claws of the MM can extend into the SEC and Nasdaq, then the battle is not worth fighting. You won't win.
Just things to ponder. Again, I thought I saw what was a blatant market manipulation in the price of Zulu-tek. The stock was at .18 cents a share and stayed there even after a 12 million dollar purchase of Softbank interactive marketing. The O/S were only 40 mil. We found out only much later that its main investor had a rather shady past and that he may be the reason for big investors shying away.
Make sure you know everything about your company before you accuse the system of being unfair.
Matty Gregg |
