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I have been reading "The Truth of the Stock Tape" by W.D. Gann and, in
addition to impressing me with his insights, the book has raised a question in
my mind. If someone on the list can help, I hope the answer will give me a
better understanding of how the stock market operates and a topic for
conversation at the next cocktail party I attend.
Mr. Gann talks about "insiders" that manipulate stocks by accumulating them
when prices are low and distributing them when prices are high. I understand
how companies raise capital by offering stock through investment bankers. I
also understand that companies occassionally repurchase stock to support its
price. My question is, do companies routinely trade their own stock on the
open market to raise capital by accumulating the stock when its price is
depressed and distributing it when its price is high. If they do trade in
this way, how would one go about monitoring their transactions.
Dan
Pocatello, ID USA
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