Definition of Marking up or marking down prices

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TeachMeFinance.com - explain Marking up or marking down prices




historic definition...

Marking up or marking down prices -- method of manipulating a stock is by washing, which consists in buying and selling the stock at the same time. The speculator who seeks to advance a stock in price by manipulation gives to one broker an order to bid it up on a scale (that is, after each transaction in the stock to offer to buy a certain amount of the stock at, say, 1/8 of 1 percent above the last price). To another broker the speculator gives an order to simultaneously sell the same amount of the stock at the advancing prices. Thus, the speculator raises the price of the stock without actually acquiring any stock. If the speculator seeks to depress a stock in price the method pursued is the same. To one broker is given an order to offer the stock down (that is, after each transaction in the stock to offer to sell it at, say, 1/8 percent below the last price). To another broker is given an order to buy the stock. These offsetting buying and selling orders which result in no accumulation of stockare known as wash or matched orders ; and the process of advancing (or depressing) prices by wash or matched orders is known as marking up (or marking down) prices.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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