23 January, 2021

Shady Bulls And Bears

Shady Bulls And Bears
  • You are the promoter of Shady Finevest, a little known company with small number of shares in the market.

  • Form a group with some brokers and buy and sell shady shares among yourselves, that is, you do a circular trading to raise the price of the scrip. Soon your coterie will have possession of the lion's share of all the floating stock of the Shady scrip.

  • Meanwhile, spread rumours about imminent fantastic results, upcoming bonus issues etc. So others too join in and jack up the price as far as it can go. Be ambitious- some smart operators have managed to raise their share prices tenfold or more in 6-8 weeks.

  • As you had expected, the bear operators now move in, and start short selling, that is, promise deliveries of Shady shares at below current market price.

  • The BSE has noticed Shady rising very fast, so they have put in a circuit-breaker price- say rs180- above which the computerised trading system disallows transactions. Your cartel monopolises the trading and keeps the constant at Rs 180. The bear cannot qoute higher because the...


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