GREY:PGDIF - Post by User
Comment by
movinup2on Oct 09, 2009 7:58am
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Post# 16376309
RE: RE: Jitney
RE: RE: JitneyThanks for providing this explanation but at the risk of upsetting our resident know it all I have to reply. This is not an acceptable trading practice as the trades are being done with no regard for profits but rather for an undisclosed arrangement, thus creating an illusion of activity for other investors.
Unacceptable trading practices can be described as follows:
any conduct that has the effect kof deceiving the public, or the purchase or vendor of any security, as to the nature of any transaction or the price or value of the security.
specifically unacceptable would be a trade which:
Created or attempts to create a false or misleading appearance of active public trading in a security.
This type of trading creates confusion (as has been seen on this board) and prompts speculation as to the rationale for the activity!! It could easily frighten an investor into selling a security which he/she may have otherwise held on to. It is no secret that big volume and no movement is a huge contributor to investor fatigue and has caused many a loss for individuals!!
I am somewhat upset as the exchanges are SROs and admitting that they are not only aware but rewarding this type of activivty is yet another reason why people do not trust the workings of the capital markets!!