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Dan, is this not the four phases of the cycle: accumulation, mark-up,
distribution, mark-down. Then the cycle starts again. A good read,
IMHO, is "Reminiscences of a Stock Operator" by Edwin Lefevre. There is
a lesson in each chapter.
Al Taglavore
HARELSDB@xxxxxxx wrote:
>
> 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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