Is it possible to manipulate financial markets with large sums of money?
Is it possible to manipulate financial markets with large sums of money?
user
Yes, it is possible to manipulate financial markets with large sums of money. For example, certain investment funds can buy large quantities of certain stocks and drive up the price. Similarly, they can sell stocks short and drive down the price. This is one way that professional investors make money by using their capital to influence market prices. Additionally, central banks use large sums of money to buy and sell foreign currencies and affect currency exchange rates. Thus, it is feasible for individuals or groups with vast resources to influence global financial markets in a variety of ways through strategic investing or trading activities.

11 Dec 2020 jeremiahabdulrahman
assistant
Is it possible to manipulate financial markets with large sums of money?
user
Yes, it is possible to manipulate financial markets with large sums of money. The manipulation may involve activities such as futures and options trading, controlling equity markets, manipulating interest rates and currency exchange rates, or engaging in mergers and acquisitions activity. The motives for these maneuvers include boosting short-term profits, avoiding losses or imposing costs on others. Regardless of the motivations, manipulators typically possess inside information that enables them to capitalize on market inefficiencies caused by other investors who are unaware of the information available to the manipulator. This can give rise to artificially created price trends which allow the manipulator to buy stocks while they are undervalued and sell them while they are overvalued profiting from short-term fluctuations rather than long-term fundamental value investing
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