Stock market manipulation
The Stock market is a wonderful place to invest your money in. If you invest early and often in a diversified portfolio you will end up rich, period. It’s that simple!
Unfortunately, when there is so much money to be made there is manipulation of the stock market at times.
Many times there is insider trading. Which is illegal. Insider trading is where someone “in the know” gets information about a company that will effect its stock price and profits from it. Martha Stewart went to jail for a few years because of speculation that she participated in Insider trading.
It’s simply not fair to buy shares of a company from someone else when you know information about a company that you shouldn’t.
For example, lets pretend Google is going to buy Yahoo at a 50% premium. Someone who knew that this was going to occur would buy up as many Yahoo shares that they could, which is virtually robing other investors that do not know that this deal is going to go down.
The best way to avoid manipulation in the stock market is to invest in large, well known companies that are highly traded. It is also always best to diversify in many different companies in many different sectors.