RE:AnonymousMentioned this to my broker about annon.... Understand why someone would sell via Annon, but buying is another story.....
What he mentioned floored me...... He said that their house trader sells and buys under Annon all the time....... Notice I said Sells.... and buys....
Or more importantly Sells then buys
Onver the past couple years the investment firms and banks have become more predatory.... that is their own clients are meat!..
They all have house traders. The firms have large books..... their clients protfolio of stocks.
It is much easier and less risky to sell a stock that rises from the fold than to pick a winner and wait for the market to push the share price up.
This has become the norm on the venture exchange, as a stock rises the house traders sell into the run,,,, the house is not short as they have simply sold some of their clients holding within the firm.... Thus no short position to report.... They continue to sell untill the push the stock back into distress, and then they slowly buy the stock back!
They use annon so that the information pool is contaminated.... investors are unaware that this is happening.... There is no short position reported as the short is in house.... They just owe you the stock they have used.
This is a conflict of intrest, breach of trust and fraud...... But thats OK here in Canada where institutions are more important that individuals.
This is why any run on a stock is not sustained..... Of coarse there is the odd time they can't push the price back down..... that when a stock breaks out.... Traders are caught short and no way to recover except to hit the ask...... When I see that happen it makes gives me a warm fuzzy feeling.
This one reason why Annon is used ..... amoung other things!