|
PureBytes Links
Trading Reference Links
|
HARELSDB@xxxxxxx wrote:
>
> ....
>
> 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
Dan,
Companies do trade their own stock. The largest companies have their own
trading rooms. However, the trading is not done to manipulate price.
Don't
forget that as part of their retirement packages, most companies offer
stock accumulation programs to employees. These companies have to
purchase
stock to make sure it is available for the retirement programs. So they
do
trade their own stock to get the best price possible. They are not
trying
to manipulate the price.
Regards,
Tim
|