Is it me?9 May 2019 21:14
I am quite new to trading but I am already a bit weary of all the comments suggesting meddling and what is essentially allegations of fraud on the part of market makers.
From what I can see and understand at this point the value of any share is driven by the buy and sell volume at any particular point in time. So in times of selling there is always going to be people undercutting the ask price to drive the price lower and in times of buying there will always be people exceeding the bid price to ensure they get the deal done and shares they want bought,,, so driving the price higher.
I do see that it is possible for large players to put sell or buy orders on to the market to influence the price somewhat but this is not MM's "holding it back" from what I understand?
The other part people here like to say is that Large buys and sells are being hidden from us until after hours or until the next day. Again from what I understand this is perfectly legitimate and allowed as a tool to stabilise the price - as is the job of market makers. Although perhaps this has the possibility to be abused it would require the complicit actions of many audited institutions. Delaying the release of the fact that a 10,000,000 sell has just gone through stops everyone just panic selling and crashing a stock. Delaying a 10,000,000 buy gives more people a fair crack at getting in on share at a sensible price and not one driven by people speculating that the 10mill guy has some sort of insider info. Seems to me that the delayed reporting is in our best interest and helps reduce volatility.
This is all my own opinion from my understanding of what i have read and I am HAPPY to be corrected or educated on any part of it. It is not meant to be in any way a "this is how it is" type post, its a post of my understanding and I welcome any proper discourse on it as this is how I can learn. If you do though please provide some evidence or supporting information so that I and probably many like me can get a better understanding.
Good Luck All holders