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Finance allah shmoop What is market manipulation All right people

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Ah sleazy hedge fund trader guy with a huge friendly

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smile has been shorting shares of a vaguely known tech

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name Thingamabob thingamabob Dot com Yeah that's it and yeah

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even they don't know what this thing does Well heggie

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mk sludge is betting the shares will go down soon

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

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

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action calling with a disguised voice a bunch of financial

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journalists who have next to no training in finance He

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whispers to them about fraud in the reporting of the

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books of thing He finds an ident him to a

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cod ical to an addendum on page four hundred eighty

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

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office And then he whispers money laundering being unschooled in

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hungry for a headline The journalists have no idea what

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to dio who to call to actually get a real

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reading on this issue S o they do what most

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

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blogged writing about potential fraud at this thing All right

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Well about eight seconds after the headlines start hitting the

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tape well and they come from a four different journalists

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So those headlines must be accurate right Well things doc

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

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by buying back the shares he shorted and he makes

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a fortune and the market has been perfectly manipulated illegally

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

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

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schemes out there Other schemes Well today an obvious one

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lives inside all the social media world where fake news

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can be planted anonymously with few if any repercussions for

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the violator if you can even find him Another more

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nefarious scheme involves collusion of that quote respected unquote wall

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street sell side analysts who when filled with truckloads of

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negative data about a company voluntarily given to him by

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heggie mk sludge is finally swayed under the promise and

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boss pressure of massive commission revenues from that hedge fund

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teo write something negative That is if the sell side

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analysts will only accede and write a very highly critical

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report of the company confirming at least a few points

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Made by the hedge fund that things were not so

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rosy While then the remaining legions of wall street penguins

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will all follow suit jumping into the waters of cell

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

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fund make a fortune again covering his short Well the

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same goes in the other direction of course with a

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little whisper that well google wants to buy them for

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one hundred eighty two dollars a share I heard this

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in the the restroom there well in the real world

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

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birds of a feather and they all tend to live

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

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