How do you manipulate the stock market?

iridescent007's picture
Rank: King Kong | banana points 1,085

I feel curious about this topic. A lot of people know about "inside trading", but is it the same as manipulating the stock/equity market? How does someone do this?

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Comments (7)

Best Response
Sep 11, 2017

I've tried doing this but I didn't have the connections. It takes a lot of "cooperation" and initial investments and human trust.

Basically, any way you can affect the underlying operation of a company - you can control its price movement.

  1. Short an airline stock and find a way of blowing a plane up
  2. Find a mining company with mines in Africa, travel to africa and tell a member of the ministry of mines that he is to slap the company with a back-tax allegation of approximately $10 billion. A shock like this is so great, it can split the value of the company in half.
  3. Find an oil & gas exploration company and use and underwater remote controlled submarine that looks like a shark to crash into the drilling pipe. If this thing breaks, the oil spill should result in a national incident and annihilate the stock.
  4. Stalk a factory worker of a famous high flying stock and bribe him into tampering with the product so downstream somewhere there is a huge danger impending for the end-user when he uses it.
    Example: Plant e-coli in Chipotle's kitchen by talking to a worker there and giving him $50,000.00
  5. Bribe the union head of a famous manufacturing company whose employees are under a union to force the union to go on a strike demanding higher wages for 3 months. Tell him to hire a few of his subordinates to damage parts of the factory by creating a riot and have photos to give to Reuters and Bloomberg. Negative news like this can do 10% damage if it affects cash-flow.
  6. Find a member working in a refinery and tell him to tamper with the refinery in a way that will guarantee an explosion.
  7. Find a factory worker of a pharmaceutical company and ask him to divulge false information to the USFDA audit team so the audit team slaps allegations of non-compliance to the company. This can do serious damage. (Form 483).
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Sep 11, 2017

Here's an other goodie.

Hire poor muslim people that know how to fly a plane, and have them crash into a seriously known property world-wide (It has to be in a famous city and tall-enough for them to crash into easily while still flying).

Beforehand, you'll need to have made sure the insurance company covering the building has a major proportion of its liabilities tied up to that one single building, and you'll want to make sure if the building falls, the insurance company goes completely kaput.

It should be listed on the stock exchange and before the planes crash, you'll want to have a massive short position on the insurance company.

D.I.

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Sep 11, 2017

Insider trading, I think, is a specific type of securities fraud. Manipulation is probably a wider range that encompasses different tactics one could use to get an upper hand. I'm not a lawyer, but law is all semantics, rule definitions, evidence of the event that took place, and the type of punishment that the law permits to be applied to what's found during proceedings. So, I'm sure it comes down to interpretation of the rules and what events actually take place on what results in any illegal activity.

TL;DR, don't do either.

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Sep 11, 2017

You manipulate it by owning an exchange and "co-locating" High Freq. fuarks close as possible to your market making machines. Then KA-CHING!!! You're rolling in the dough! #FlashBoys #MichaelCLewisCrew

Sep 11, 2017

Are you feeling curious or criminal today?

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Sep 11, 2017

Both ! (Well Played)

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Sep 11, 2017
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