SEC Admits It’s Not Monitoring Stock Buybacks to Prevent Market Manipulation

Dayen, David
http://firstlook.org/theintercept/2015/08/13/sec-admits-monitoring-stock-buybacks-prevent-market-manipulation/

Publisher:  The Intercept
Date Written:  13/08/2015
Year Published:  2015  
Resource Type:  Article
Cx Number:  CX17795

Abstract:  The price of stock is determined by the people who want it. The more buyers relative to the sellers, the higher the price of the stock. It’s simple economics; the higher the demand, the higher the price. What happens when companies decide to buy their own stock? Market manipulation. By spending money on their own stock instead of improving their product, companies can essentially leech money from investors. Sounds unethical? It gets worse. The securities exchange commission, those in charge of policing the stock market, has admitted that they have no power to stop this type of market manipulation.

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