Crazy Eddie Fraud
I owned a small mobile app public co a while ago for a few years. The things I witnessed ran deep and with most listed companies on most exchanges up and down the food chain. The fraud can go many levels deep and begins to look like a giant complex game, and for crazies out there, Sith Lords <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Patrick_M._Byrne#Campaign_against_naked_shorting_and_analysts" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Patrick_M._Byrne#Campaign_agai...</a><p>One fun fact I remember is that your share price is not calculated based on shares outstanding. Sure, perceived supply and perceived demand account for a lot but many traders and armchair investors are not aware of this larger detail:<p>The bedrock of your share price is based on available tradeable DTCC-deposited <a href="http:&#x2F;&#x2F;www.dtcc.com&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.dtcc.com&#x2F;</a> &quot;unchilled&quot; float. It&#x27;s all in the float and that includes a few private companies out there that determine your float number, including the DTCC and CapitalIQ <a href="https:&#x2F;&#x2F;capitaliq.com" rel="nofollow">https:&#x2F;&#x2F;capitaliq.com</a>, which can mean a manipulated or highly inaccurate market cap via your share price which is calculated by your float. And, if a crook has any spies or moles working there, that crook can get a lot done with his buddies which can include stock transfer agents who play a big role here. I got offers like this from time to time.<p>Market makers and institutions will eventually dial your price in based on your float as it&#x27;s one of the few solid factors they have for determining price. Shorts are all over this too. Large caps have arsenals of CFO&#x27;s, attorney&#x27;s and connections that fighting for an accurate unmanipulated float is trivial. &quot;Bigger Stuff&quot; is happening for them although NFLX was known as a &quot;short incinerator&quot; due to their essentially well-engineered low float which helped them maintain a high but volatile share price historically.<p>For mid size and small public co&#x27;s if you&#x27;re market cap is manipulated, you can see this when you ask for NOBO reports provided by the DTCC combined with reports from CapitalIQ who control how and when the main DB gets updated with the number of shares used to calculate your float aka number of tradable shares any given day, week or month. Try and get them to make corrections if you can, sometimes you won&#x27;t be able to, depending on who you know or how well your engineering plan for your float is from the start of structuring your public co.