I get your point, it is not against the law or rules of trading as far as I know. This is also the way the 'goreng' syndicate spread rumour to attract punters into it. Syndicate accumulate plenty of the 'goreng' stock then spread or create some false good news or rumour about the company so that when syndicate push up the stock, people will chase into it then the syndicate will let you have it at high price and late punters stuck full with overpriced stock and become like 'crab'.
But on the other hand, if you guys let say A,B and C has been compromised in pushing up the stock through manipulation then it is definitely against the manipulation law eg.
A sell to B -> RM1
B sell to C ->RM2
C sell to A -> RM3
then the cycle goes on and price become RM 10, let say, then it is definitely called manipulation since A,B and C are under same syndicate. This scenario is most probably happened in low liquidity stock since not much liquid shares in the market and easier to do.
Also, when a share is overpriced, you might see tons of share flocking out waiting to sell for you. Several million Ringgit of buying is just peanut in the stock market. Don't think stock market is that easy to play with.
I use the word punters rather than investor since in my opinion this is kind of speculation rather investing.
Btw, it is called investor not invester.
Nov 18 2006, 11:44 PM
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