POSTED BY June 16, 2011 9:02 pm COMMENTS (4)ON
I had came across something like this.Can anybody explain this to me in layman terms.
I know few operators who specializes in ramping up share prices of companies .This operators are learnt to be providing a kickback of up to 20% to those who arrange buyers for their counters.They are also learnt to be taking big investors for a ride under the garb of margin funding. The modus operandi? Approaching big investors with ready money, giving them 20%-30% payment (as collateral) to avail of full funding against the pledge of the shares of the counter that he ‘handles’. The provision of margin money provides the much-needed aura of genuineness to the entire operation.However, the operators seldom comes back to the financiers and, as the scrip starts hitting the lower circuit, the financiers fail to exit and are stuck with huge quantities of the stock.
It is said operators in short time make a certain stock bullish and bearish in such ways.How far this is true?