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Laurens Rademakers

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"Fund-raising" via crowdsourced artificial shocks on the stock market

I'm not an economist, so please down this idea immediately if it makes no sense!

This is about a coordinated way to create shocks on a market, and to profit from them.

Crowdsourced speculation, say.

-Suppose you have a website where people gather because they want to make money for charities or for particular actions
-Each member connects to a stock market, allowing him or her to buy stocks
-When money needs to be made for a particular charity or action, the website decides to shout out "BUY" and then mentions the name of the stock
-If there are enough members and they all follow the order immediately, the stock price will shoot up
-After a while, the website shouts "SELL" and members would make cash

The cash is then donated to the charity or the action.

I'm not sure if this is legal, though. :-)

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    Jun 6 2012: Well, the thing is that if the crowd of small people can chip some money off of ordinary speculators who are in it just to satisfy themselves, that would be a good thing, wouldn't it? Kind of a crowd-sourced redistribution of profits.
  • Jun 6 2012: If you think it might be illegal, it probably is. And remember, every buy or sell comes at someone's expense. You'd have to decide the ethics for yourself.

    Thanks,
    Doug Bell