Finance: What is Market Manipulation?

Market manipulation is manipulation of the, uh... market. Like...illegally. Yeah, any sort of "scheme" is probably something you want to avoid.

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Transcript

00:22

mk sludge is betting the shares will go down soon

00:25

and he'll profit from the short sale Well they aren't

00:29

going down so he's panicking Well he just jumps into

00:32

action calling with a disguised voice a bunch of financial

00:37

journalists who have next to no training in finance He

00:40

whispers to them about fraud in the reporting of the

00:43

books of thing He finds an ident him to a

00:46

cod ical to an addendum on page four hundred eighty

00:49

two on their filings from their uh who's becca stan

00:52

office And then he whispers money laundering being unschooled in

00:57

hungry for a headline The journalists have no idea what

01:01

to dio who to call to actually get a real

01:03

reading on this issue S o they do what most

01:06

financial journalist d'oh which is just vomit letters on their

01:09

blogged writing about potential fraud at this thing All right

01:12

Well about eight seconds after the headlines start hitting the

01:15

tape well and they come from a four different journalists

01:18

So those headlines must be accurate right Well things doc

01:23

it's cut in half Heggie mix sludge covers is short

01:26

by buying back the shares he shorted and he makes

01:29

a fortune and the market has been perfectly manipulated illegally

01:34

Yeah you can't do this people This is not legal

01:37

and it's just one illustration of tons of market manipulation

01:40

schemes out there Other schemes Well today an obvious one

01:44

lives inside all the social media world where fake news

01:48

can be planted anonymously with few if any repercussions for

01:51

the violator if you can even find him Another more

01:54

nefarious scheme involves collusion of that quote respected unquote wall

01:59

street sell side analysts who when filled with truckloads of

02:03

negative data about a company voluntarily given to him by

02:07

heggie mk sludge is finally swayed under the promise and

02:11

boss pressure of massive commission revenues from that hedge fund

02:15

teo write something negative That is if the sell side

02:19

analysts will only accede and write a very highly critical

02:23

report of the company confirming at least a few points

02:26

Made by the hedge fund that things were not so

02:28

rosy While then the remaining legions of wall street penguins

02:32

will all follow suit jumping into the waters of cell

02:36

mortimer cell they'll crater the stock and let the hedge

02:40

fund make a fortune again covering his short Well the

02:42

same goes in the other direction of course with a

02:45

little whisper that well google wants to buy them for

02:48

one hundred eighty two dollars a share I heard this

02:51

in the the restroom there well in the real world

02:54

there's a close knit club of market manipulators you know

02:57

birds of a feather and they all tend to live

02:59

eventually right here f y i visiting hours are from 00:03:04.368 --> [endTime] ten to four tuesdays and fridays