b c d e f g h i j k l m n o p q r s t u v w y z search |
TeachMeFinance.com - explain Marking up or marking down prices historic definition...
Marking up or marking down prices -- method of manipulating a stock is by washing, which consists
in buying and selling the stock at the same time. The speculator
who seeks to advance a stock in price by manipulation
gives to one broker an order to bid it up on a scale (that is,
after each transaction in the stock to offer to buy a certain
amount of the stock at, say, 1/8 of 1 percent above the last
price). To another broker the speculator gives an order to
simultaneously sell the same amount of the stock at the advancing
prices. Thus, the speculator raises the price of the
stock without actually acquiring any stock. If the speculator
seeks to depress a stock in price the method pursued is the
same. To one broker is given an order to offer the stock down
(that is, after each transaction in the stock to offer to sell it
at, say, 1/8 percent below the last price). To another broker
is given an order to buy the stock. These offsetting buying
and selling orders which result in no accumulation of stockare
known as wash or matched orders ; and the process of advancing
(or depressing) prices by wash or matched orders is
known as marking up (or marking down) prices.
About the author
Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer. |