Keeping an Orderly Market For those who do not know what is meant by a orderly market,,let me explain what I know
The SEC always monitors stock actions for many reasons like things that seem out of sync.For instant why did a stock go up or down in a flash,or more than 10%
Examples
Kevin Gillespie, the Florida man charged alongside a group of Canadians for the Arias Intel Corp. pump-and-dump, has avoided jail, with a San Diego judge ordering him to serve five years of supervised probation. Prosecutors said that Mr. Gillespie, who was the president of Arias Intel, provided advance news releases as others ran a paid promotion. Unfortunately for the group, one of those that they included in their scheme was secretly co-operating with the FBI.
Ongkaruck Sripetch, a Washington State man charged alongside a group of Canadians for a $6.6-million pump-and-dump, has pleaded guilty. (All figures are in U.S. dollars.) Prosecutors claim that Mr. Sripetch, also known as "King Richards," was part of a scheme in which a group of men boosted stocks partly through a website he controlled, called Stockpalooza.com. As the men were touting the companies, they were secretly dumping hundreds of thousands of shares, the government said.
What Is Manipulation?
Market manipulation is the act of artificially inflating or deflating the price of a security or otherwise influencing the behavior of the market for personal gain. Manipulation is illegal in most cases, but it can be difficult for regulators and other authorities to detect, such as with omnibus accounts.
Manipulation is also difficult for the manipulator as the size and number of participants in a market increases. It is much easier to manipulate the share price of smaller companies such as penny stocks because analysts and other market participants do not watch them as closely as the medium and large-cap firms. Manipulation is variously called price manipulation, stock manipulation, and market manipulation.
Most company's have what they call a box for the bid and sells.Sometimes it's the same broker or a couple of them working together or sponsors or a syndicate.It can be pre-programmed or by manual inputs
They will try to keep in a certain price range to get any cheap stock they can get beforehand.
Why do the ask's not just sell,if they really want out,,I call it blockers to lower the price.
PP will keep it at the certain level depending on the PP price
Sometimes a company will put out a statement that they did not know why for the sudden high price movement with no news.
Believe there is always a reason.
Method #1 of 4
Mark-up Practically riskless syndicate
This method is used when the professional group controls all the floating supply called the mark-up,,,float they own most of the shares,
It is accomplished by having members of the group trade with one another at progressively higher prices.Also know as creating a box.
One will have the ask price and the other will buy at the ask price.They trade between each other ,could be more than two.
If they fail,it's because they did not have all the float.
The cyclical nature of the market is the second most important thing that you have to know after psychology
Thou shalt understand the market and it's psychology buy low sell high