Hello everyone,
So I read the other day that almost 90% of all stocks are roughly owned by the richest 10% of individuals (directly or through institutions).
I'm really new to the game of investing in stocks. I have however, completed my higher education in Finance, so I know the fundamentals of how the stock market works. My first "investment" was on 6th of May of this year, total of 6, all AI related.
Am I correct to assume that these "whales" (a group of individuals acting simultaneosly at the same time) choose to DUMP or INVEST in the market at a specific moment as to manipulate the market?
***Example 1:*** When **MU** released its Q2 earnings report on June 24, hours prior to the release, the stock price was reduced by almost 20%. Just as they released it, the price spiked back to the level it previously was. Less than half an hour later, the stock price started to decrease to almost the same low level it was prior to the report release. In less than 30 minutes, they practically made 20% profit.
***Example 2***: Just today, as soon as the Asian market opened, the stock price of **SK Hynix,** increased from €1200 to €1400 in just 1 hour. After that, 6-7 other hours have passed, there is literally no change in price.
***Example 3***: The DUMP and PUMP with (almost) all **Space-related** companies. Out of nowhere a roughly 50% stock price reductions. And then, just few days ago, without any major news coming from these companies (earnings reports, new deals etc.), their stock price increases 30-40% in less than 2 days (for some even within a day)
1. How is this, not market manipulation? What am I missing here?
I get the feeling that the game is not really being played, but rather orchastrated, and everyone else gets small chunks of earnings here and there.