We see examples of this all,the time on A I M so why is nobody policing it ? Surely it should be absolute routine practice to randomly take the dealing in a given share and examine what has gone on trading wise for ,say,the past 30 days and look for any examples of misconduct. There are examples of I I,s being given the heads up on price changing events that can surely be spotted a blooming country mile off that go completely unobserved by the powers that be. As I say I really believe that AIM is viewed as the lawless dog eat dog market .....after all how much sympathy are the public going to have for the likes of us crying foul over our bombing investments ? None is how much. Personally I think the most we could do is ask for some tighter policing of the market. I would not like to name names just ask the question as to how much AIM is scrutinised and how much better it could be in the future. After all making AIM shares eligible for ISAs is opening up the public appeal hugely, they and us should at least feel confident that we are in a fair play arena.
Below is an extract from the FCA factsheet. I would expect that the opposite in both cases would also be true ie. to falsely deflate the value of a share. .fca.org.uk/static/documents/fsa-market-abuse-factsheet.pdf Market abuse :- 4. Manipulating transactions – trading, or placing orders to trade, that gives a false or misleading impression of the supply of, or demand for, one or more investments, raising the price of the investment to an abnormal or artificial level. For Example A person buys a large number of a particular share near the end of the day, aiming to drive the stock price higher to improve the performance of their investment. The market price is pushed to an artificial level and investors get a false impression of the price of those shares and the value of any portfolio or fund that holds the stock. This could lead to people making the wrong investment decisions. 5. Manipulating devices – trading, or placing orders to trade, which employs fictitious devices or any other form of deception or contrivance. For example Buying shares and then spreading misleading information with a view to increasing the price. This could give investors a false impression of the price of a share and lead them to make the wrong investment decisions.
The FSA was split a while back. It is now PRU - part of the Bank of England and the FCA - the Financial Conduct Authority. Whether a transaction is a buy or a sell Is apparently not that straightforward and although it helps as a guide to what is going on is not as important as other aspects of AIM. Whether price manipulation or insider trading etc. it does however appear (IMO etc) that prices are not a true reflection. Someone on another board a while back said that on AIM good news is bad news, bad news is bad news and no news is bad news. Some of the management is extremely poor - always easy to see in retrospect but there are far too many COEs paying themselves and fellow directors salaries that do not appear in any way connected with performance.... and yet at AGMs remuneration packages get voted through. Even if all PI's got together, the percentage of shares held by PI's v those of others would not carry enough weight. There are good companies (or companies with good potential) on AIM. AVN may be but as many state, for a communications company, communication (PR) appears not a strong point.
Sadly I think you are right . The financial people all went to the same schools and watch each other's backs. I ask again if anyone out there can simply explain some of the stuff that goes on as that would be a starting place. At least if we know that AIM is some sort of Wild West frontier town where you can shoot the sheriff and get away with it then ok at least we know the rules and that is there ARE no rules !
Folks - don't know if you have been aware of a campaign that I have been trying to get going (originated on the MAGP BB)? At a very simplistic level I have been trying to effect a change to the way that trades are reported, so that 'buys' appear as 'buys' and 'sells' appear as 'sells'. I appreciate that your wishes extend further but if the response I have had so far is anything to go by then good luck is all I can say.
I have contacted London South East, The London Stock Exchange, The newly set up Bank of England regulatory body (sorry can't remember the name - something like PBS but I forget) and I have also (along with quite a few other BB posters) written to my MP about the issue.
I have to sadly report that so far all we have met with can only be described as stone walling. No body wants to effect a change because it is in nobody's interest to change. Effectively the small PI can stuff it.
I would urge contact with MPs though as they did appear genuinely interested in the issue - just not been able to help as yet. The more people who write the better as far as I'm concerned.
Well put jeffoto and escargot. I am not a trader simply a private investor. But when I look at the trading history of this share it is blatantly obvious that it is being cynically manipulated. Yet again batches of A trade sells for tiny amounts marching the price down followed by batches of tiny A trade buys which have no effect on the price. In fact when I checked just now there wasn't a single O trade shown. There must be some redress or protection for individual investors by the FSA and if there is not it is about time there was. So yes if it is possible lets petition the FSA. Put my name down first.
We need someone who knows the real technicalities of how AIM works, or should work. All I know as a novice is that I see things that defy logic . If these things are legit and just beyond my knowledge then so be it but if they are market manipulation that is shady then why should we investors be shafted . I am into 5 stocks all of which just seem to edge down and down to a point where I am £22K down on a £100K punt. I am not being bitter and twisted , if the cash was badly placed then I hold my hands up but if I am being stiffed to keep some city boys in Bolly then I am not happy. The idea ,surely,is that we help finance a company and if they do ok we see our investment go up. If manipulation means that these stocks are cynically being valued to suit certain peoples agenda then I will be very unhappy about it. As I say I am making no accusations at anyone ,I simply want to know what is permissible under the rues of AIM and if the rules are being abused. I don't see how that is asking too much.
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