April 16, 2010
I understand that some companies can manipulate stock prices in this manner: They buy a significant percentage of the shares of stock in a company on margin. This drives up the price of the stock. They then short the stock. Then they sell their stock shares in small lots to drive down the price and then cash in the short position. It looks like this is the strategy presented here. http://www.gghc.com/AboutUs/what.aspx
I own some small amount of UQM stock and the above company has reportedly owned as much as 11% of this stock, causing big swings in the stock price unrelated to the prospects of the company. Is such practice of stock price manipulation legal?