They include: spreading false or misleading information about a company; improperly limiting the number of publicly-available shares; or rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security. Those who engage in manipulation are subject to various civil and criminal sanctions.
But , you can affect the price of a stock also by spreading real , accurate and verified information , online .
If for example , there is a negative information , that has been already published online , by a leading financial media , its 100% legitimate to share this information , thousands of times , over thousands of websites , forum , blogs , articles , and more . A huge negative campaign like this , may damage , the price of a stock , quite easily .
In this case , you did not published any misleading information , you just shared a negative information already published by a verified source , and this is 100% legal .
It is of course easier to start such negative online campaigns , when the target is a small or micro cap company , like Penny stocks are , of course, its much easier to reach investors by taking control of all keywords connected to the company , so that each time an investor will search information on Google about them , he will immediately see the negative information published about this company .
The good news are that you can influence the price of a share , in a legal way .
Manipulation may not be legal , if is intentional conduct is designed to deceive investors by controlling or artificially affecting the market for a security. Manipulation can also be acheived in a legal way , using sophisticated negative PR campaigning .
Manipulation can involve a number of techniques to affect the supply of, or demand for, a stock.
The act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. Manipulation is any interference in the market mechanism that prevents determination of a fair price, as well as any factor that may affect the stock price artificially.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.