Scalping (so also in German; more rarely Abzockerei [a word that only entered German after 2000; also in the form Abzocke])

Generally, the recommendations of dishonest)financial journalists in the press, radio, or television to significantly influence the price of a security with the aim of gaining advantages for the principals. Regulators consider this to be a prohibited insider transaction. Scalping in Internet forums, blogs and on Twitter, where the corresponding posts (tweets: postings made on the social media website Twitter) are almost impossible to see through, is difficult to prevent. – In particular – the purchase of securities by a specific buyer, – who subsequently issues a public recommendation to buy. – If the price then rises as a result of the recommendation, the purchaser can sell the securities again at a profit (the practice of purchasing a security for one’s own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation). – The trades of a scalper (a legitimate method of arbitrage of small price gaps created by the bid-ask spread). – See stock analysis, analyst, blog, stock letters, bucketing, daimonion, enabler, financial vulture, frontrunning, secret tip, gold deception, iceberg orders, insider transaction, credit jeopardy, price manipulation, nominee, Pairoff, pump and dump, avenging angel, sham transactions, strong buy, Twitter, wash sales, securities analysis. – Cf. BaFin Annual Report 2003, p. 191 (criminal side), BaFin Annual Report 2006, p. 173 f. (individual cases), BaFin Annual Report 2007, p. 173 (scalping concerns about half of the manipulation cases uncovered), BaFin Annual Report 2009, p. 186 (focus on scalping in over-the-counter trading), and the respective BaFin Annual Report (chapter “Supervision of securities trading and investment business,” section “Monitoring market transparency and integrity”).

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/