Short Position - Speculation vs Manipulation

TheStar Sat, Jul 11, 2020 08:00am - 3 years View Original


There has been a slew of unverified news appearing on obscure websites and even companies commenting on blog entries as a justifiable reason for a jump in their share price. That brings into view the question of speculation and manipulation. Speculation has been seen as an acceptable reason for share prices to move but when “news” appears on sites that have no compulsion to have independently verified their news entry, then the motive of such news has to be questioned whether it borders on manipulation.

Speculation vs manipulation

WHEN the stock market gets red hot, the urge to have news of what companies are doing to improve their business is desired.

News of acquisitions and investments, and moves that will theoretically make a company money or change its fortunes via the entry of a new shareholder or business can be a driver of sentiment surrounding the stock and can act as a catalyst for a rerating of the stock.

News flow is an important generator of momentum, as it gives validation to market murmurs that may have taken place before this.

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