Daisy Chain

A type of manipulation by certain investors to artificially increase the price of a stock and its volume(by circular trading) to lure in unsuspecting investors and cash out at a higher price for a profit.

This is usually practised on stocks with low volume or that are not currently in the public’s eye, making them easier to manipulate. There is sometimes an understanding between the investors and the management of a company as inside information will be needed to prevent the manipulators from holding an empty bag. Sometimes there is a certain coordiation, with the management issuing favorable press releases/reports after the manipulators have finished their accumulation to drive up the price.
This is usually more often seen in emerging markets with poorly regulated markets.

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