[PDF] [PDF] Market Makers Methods of Stock Manipulation: How Trading - CORE

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price to $197 • MMM shares have outperformed the market over the past quarter, with a gain of 6 6 , compared to (NYSE: MMM) is BUY with a target price of $197, up from $180 is set forth herein for historical reference only and is not

[PDF] Analysts Notes - Washburn University

21 sept 2015 · MMM shares have underperformed the S&P 500 and the industry over the past quarter Market Data Pricing reflects previous trading week's closing price 200- Day is set forth herein for historical reference only and is not

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27 oct 2020 · 3M Company (MMM) Dividend Yield: 3 7 5 Year Price Target $202 slow to 2 going forward in order to bring the payout ratio within the historical range 2020, shares trade with a price-to-earnings ratio of 19 3

[PDF] 3M Company (MMM) - Sure Dividend

26 jan 2021 · 3M Company (MMM) Dividend Yield: 3 3 5 Year Price Target $229 slow to 2 going forward in order to bring the payout ratio within the historical range 2021, shares trade with a price-to-earnings ratio of 18 6

[PDF] Market Makers Methods of Stock Manipulation: How Trading - CORE

market maker manipulation (MMM) In this arti- defeat the adverse effects of MMM on your firm's equi- ty securities, (2) some understanding or review of the history and sophis- of a larger limit-price day order for 100 or 200 shares 5 Here 

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a stock 5 Go back to Charts and you'll see a chart of the symbol you highlighted Once you Move (MMM), Bid (B), Ask (A), the last stock price (the big green or 

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ticker symbol is MMM results and trends may differ materially from historical results or those Stock price comparisons (NYSE composite transactions)

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W est Chester UniversityDi gital Commons @ West Chester UniversityAc counting Faculty Publications& &1706,0* 7//(4 M arket Makers' Methods of Stock Manipulation:

Anthony J. Cataldo IIW

est Chester University of Pennsylvania, a cataldo@wcupa.eduL arry N. KilloughF ollow this and additional works at:+ >2',*,6$.&1//1059&72$('7$&&#)$&27% $461)6+( ,0$0&($0',0$0&,$.$0$*(/(061//105hThi

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Cataldo, A. J., & Killough, L. N. (2003). Market Makers' Methods of Stock Manipulation: How Trading Manipulations Can Adversely

<(&6$,4/537,6,(5$0'"+$6 ,0$0&($0$*(45$01%1766M anagement Accounting Quarterly, 4(4), 10-13. R etrieved from+

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10MANAGEMENT ACCOUNTING QUARTERLY SUMMER 2003, VOL.4, NO.4

I f you are involved in the decision to finance assets with debt or equity and your company"s shares are publicly traded or may be, you should watch for and guard against exposure to broker-dealer or market maker manipulation (MMM). In this arti- cle, we offer you a primer on MMM, "naked shorting," and Internet-based sources of additional information. 1 By increasing your awareness of market maker manipu- lation, you may be able to (1) better recognize and defeat the adverse effects of MMM on your firm"s equi- ty securities, (2) dramatically reduce the risks associated with your firm"s failure to maintain market-based debt covenant ratios with lenders, and (3) avoid the need to recapitalize with additional equity issues at a manipulat- ed or artificially low price per share.

THEMARKETMAKER

A market maker, who handles small-sized and micro- cap stocks; an exchange floor specialist, who is involved with mid-sized or large-capitalized stocks; or a broker- dealer, who handles all stocks, performs two separate and, apparently, incompatible functions.

First, all maintain an inventory of the stocks theirfirms have underwritten, continue to trade, or make a

market in. They buy and sell these inventories for prof- it. In theory, they will buy low, which reduces the decline in price per share (PPS), and sell high, which reduces the rise in PPS. Therefore, these profit-making behaviors are presumed to provide a stabilizing effect on changes in the PPS of the stocks they make a market in.

Second, they post the bid and ask prices at which

others are willing to buy or sell and match incoming buy and sell orders. In return for performing these func- tions, market makers or specialists generate revenue for their firm through various order-flow or transaction-fee schemes. But like the conflicts apparent in the dual role of an analyst-broker or auditor-consultant, the broker-dealer is faced with an opportunity to sell his or her firm"s inven- tory before others in a declining market or buy for his or her firm"s inventory before others in a rising market. This practice is one form of market maker manipula- tion. It is illegal, difficult to detect, but alleged in many instances-both correctly and, often, incorrectly-on Internet stock-chat message boards. One relatively

Market Makers'

Methods of StockManipulationHOWTRADING MANIPULATIONS CAN ADVERSELY AFFECT A FIRM'SEQUITIES AND WHAT

FINANCE MANAGERS CAN DO ABOUT IT

BYA.J. CATALDO, PH.D., CMA, CPA, ANDLARRYN.

K

ILLOUGH, PH.D., CPA

11MANAGEMENT ACCOUNTING QUARTERLY SUMMER 2003, VOL. 4, NO. 4

highly publicized example of MMM is referred to as front running.

FRONTRUNNING

In front running, specialist market makers use their knowledge of private, incoming order-flow information revealed by limit orders to generate monopolistic trad- ing profits. Though front running per se may not be particularly damaging to your firm, it illustrates the abuse of the conflicting roles of the broker-dealer as both a facilitator of an orderly market (matching incom- ing orders from other investors to buy and sell) and as someone with the desire to generate profits from the inventories traded for their firm"s account. 2 On June 4, 2002, The Wall Street Journalreported that

Knight Trading Group, which handled more than 11%

of all the buy and sell orders for Nasdaq-listed stocks in

2000, was under investigation by the Securities &

Exchange Commission (SEC) and the National Associa- tion of Securities Dealers (NASD) for alleged front run- ning. Knight"s former head of institutional trading accused Knight traders of front running. He alleged that the traders placed their own orders for stock before placing the same orders for Knight"s customers, profit- ing in advance from customer orders they knew would push the stock of a company up or down, costing investors millions of dollars. The day the

Journalstory

was published, Knight"s chief executive issued a state- ment denying the allegations. In November 2002, Knight announced that the SEC began formally investi- gating the front-running charges. The investigation has not yet been concluded.

Another type of market manipulation is the naked

short sale. Firms with a declining PPS are targeted forquotesdbs_dbs7.pdfusesText_5