Can SI Members Really Manipulate Stocks? Message Board

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Pastimes : Can SI Members Really Manipulate Stocks?

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To: Probity98 who wrote (129)	7/31/1998 10:39:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) of 461

Is it possible for CEOs to manipulate the stock price down to accommodate business arrangements? Depends on whether we're talking public or private arrangements. Privately, as in a Reg D offering, which is very common for OTC BB stocks, the answer is "no need to". I simply offer a block of stock for a mutually agreed upon price. In most cases it's about 25% off market. Publically, I'm not sure what a good theoretical example might be. Perhaps you are wondering what might happen if a fund wanted to by a block "below retail"? In that case the fund would call around to their large investors and ask if anyone wants to unload a block in what amounts to a private trade (via MMs). Usually it works in reverse. For example a Reg S holder might want to unload and the company doesn't want all those shares hitting the street so they find a buyer and everything is done privately. Does that answer your question? - Jeff

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