When seemingly positive news comes out over the weekend about a company, do they buy their own stock to bid it

Question

up so as to catch unsuspecting day traders and then sell it back right away to attract more short sellers? Is this what happenned to Lehman and f***y and Freddie today? They make money off the puts too, I bet.....doing this! Ain't they somethin? lol

Answer 1

Surprisingly, No! This is called "insider" trading and this would get years of federal penal time for all those caught. This is not to say it never happens....but the SEC runs computer programs to detect this activity and the Federal Prosecutors are only too happy to press charges.

Answer 2

A company is generally not allowed to buy shares and trade them.  They have board rules around when they can buy, and its ususally part of a pre-set program that kicks in when shares drop to a certain price.  People that are short, will try and buy before the open, but the stock is illiquid, and it will move around alot.  tba

Answer 3

Well, everyone can read the news. Including market makers.