Wow this single posting shows just how knowledgeable libs are on economics

[Cseeman]

This is SAD:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x82910


Let's say you bought 10,000 shares today of Sirius radio stock for $1.40 per share.

After you buy it for $1.40, then the new "ask" price would be $1.41, so could you then buy 100 shares for $1.41? Then, the new "ask" price would be $1.42 so you buy another hundred shares for $1.42. Then, so on and so on - $1.43, then $1.44, then $1.45.

[marv]

What was that old saying?


"Better not to post and let people think you're stupid, than to hit the keyboard and prove it......."
http://members.socket.net/~mcruzan/avatars/laugher.gif

[FlaGator]

C'mon guys, "there are no stupid questions, just stupid people" - Mr. Garrison

[FDK]

They just get DUmber and DUmber by the day.:)

[Sparky]

How are these people not just walking into walls all day?? Stupid that bad should hurt.

[Ree]

Here's the OP:


cbdo2007 (1000+ posts) Thu Oct-14-10 11:14 AM
Original message I have a question about the legality of a stock trade.... http://www.democraticunderground.com/discuss/images/transparent.gif



Let's say you bought 10,000 shares today of Sirius radio stock for $1.40 per share.

After you buy it for $1.40, then the new "ask" price would be $1.41, so could you then buy 100 shares for $1.41? Then, the new "ask" price would be $1.42 so you buy another hundred shares for $1.42. Then, so on and so on - $1.43, then $1.44, then $1.45.

So you've got a total of 10,500 shares for a total investment of $14,715.

Then, while the price is up at $1.45 you sell ALL of your current shares for a net of $15,225 for a profit of approx. $510.

Is this legal??? Or is this something the SEC would/should look into? It seems like you're just following the rules by artificially bidding the stock price up to profit on your initial investment. Just curious.