October 21, 2011
I feel as a share holding investor that creating a law in order to have a minimum nunber of shares at the bid or ask depending on the number of shares in the float would be beneficial to helping the market be free of manipulation.
for examlple why would a share holder or investor wan't to buy 2 shares at 11 cents a piece if it costs them $9.00 dollars to have a order filled. The strategy of placing a really small ammount of shares at the bid or ask is to try to convince share holders into just selling instead of buying because it is not worth your time or money if you have to pay allot more money to even purchase the shares than the shares are even worth. The strategy by placing a small amount of shares at the bid or ask from a short sellers point of veiw would to be able to suddenly change ones mind and sell over that amount if the short sellers recognize each other in order to help each other buy in, in order to churn change due dates by selling to each other.
Traders who use the strategy of shorting will always dream up ideas to give them the upper hand. If their cheating or more like breaking the laws in order to manipulate the market is hard to keep up with in order to regulate them to stop market manipulation, then I think that the practice of shorting should be abolished. Same day clearing would solve that. Naked shorting is rampant in the stock market, and so are their dreamed up strategies. What strategies do the longs or share holders have? Just buying, no games.
Manipulation is against the law.