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35-576: It was founded in 1889, as a merger of two earlier clubs: the Pacific Club (founded 1852) and the Union Club (founded 1854). The clubhouse was built as the home for silver magnate James Clair Flood . The former Flood Mansion was designed by Canadian architect Augustus Laver and is located in the Nob Hill neighborhood. The reconstruction and expansion of the original Mansion into the clubhouse

70-413: A tradable security ." Agreements, often written, among a group of traders to delegate authority to a single manager to trade in a specific stock for a work period of time and then to share in the resulting profits or losses. In Australia section 1041B prohibits pooling. When an advisor enters into a trade for the sole purpose of earning commission. For example buying and selling the same stock either on

105-640: A boy who died at age 5. As a tribute to his father, James L. built the Flood Building on San Francisco's Market Street, which in 2003 was still owned by the Flood family. In 1857 James Flood opened a saloon with partner William S. O'Brien on Washington street in San Francisco . In 1858 they sold the saloon and went into business as stockbrokers . After the discovery of silver in Nevada in 1859,

140-470: Is a disruptive algorithmic trading entity employed by traders to outpace other market participants and to manipulate commodity markets. Spoofers feign interest in trading futures, stocks and other products in financial markets creating an illusion of exchange pessimism in the futures market when many offers are being cancelled or withdrawn, or false optimism or demand when many offers are being placed in bad faith. Spoofers bid or offer with intent to cancel before

175-523: Is a very simple type of fraud where the principals who publish a price or indicator conspire to set it falsely and benefit their own interests. The Libor scandal for example, involved bankers setting the Libor rate to benefit their trader's portfolios or to make certain entities appear more creditworthy than they were. High closing is an attempt to manipulate the price of a security at the end of trading day to ensure that it closes higher than it should. This

210-723: Is famous for two mansions, the James C. Flood Mansion at 1000 California St. in San Francisco, and Linden Towers located in Menlo Park , torn down in 1936. Flood was born on October 25, 1826, in Staten Island , New York, to Irish immigrant parents. He had an eighth grade education, and was then apprenticed to a New York carriage maker. In 1849 he sailed for San Francisco and the Gold Rush . After some success in

245-410: Is rare. (see Stock Bashing) Actions designed to artificially raise the market price of listed securities and give the impression of voluminous trading in order to make a quick profit. Filtering out or disregarding false and misleading social media posts that are posted for the sole purpose of artificially inflating a stock price can prevent investor losses. In a wash trade the manipulator takes both

280-418: Is usually achieved by putting in manipulative trades close to closing. In cornering the market the manipulators buy sufficiently large amount of an asset, often a commodity, so they can control the price creating in effect a monopoly . For example, the brothers Nelson Bunker Hunt and William Herbert Hunt attempted to corner the world silver markets in the late 1970s and early 1980s, at one stage holding

315-446: Is very distressed on paper , with impossibly high debt, consistently high annual losses but very few assets, making it look as if bankruptcy must be imminent. The stock price gradually falls as people new to the stock short it on the basis of the poor outlook for the company, until the number of shorted shares greatly exceeds the total number of shares that are not held by those aware of the lure and squeeze scheme (henceforward "people in

350-645: The Bank of California . As a result of a battle between the two groups, the Bank of California failed and Flood and O'Brien started the Nevada Bank. From that time on finance more than mining engaged Flood's time, and much of his wealth went into real estate. Dissension and an ill-fated attempt to corner the world wheat market in 1887 cost the firm millions. William Alvord, president of the Bank of California, in 1887 warned James C. Flood of signs of irregularities at

385-751: The Corporations Act 2001 , and in Israel under Section 54(a) of the securities act of 1968. In the US, market manipulation is also prohibited for wholesale electricity markets under Section 222 of the Federal Power Act and wholesale natural gas markets under Section 4A of the Natural Gas Act . The US Securities Exchange Act defines market manipulation as "transactions which create an artificial price or maintain an artificial price for

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420-796: The market ; the most blatant of cases involve creating false or misleading appearances with respect to the price of, or market for, a product , security or commodity . Market manipulation is prohibited in most countries, in particular, it is prohibited in the United States under Section 9(a)(2) of the Securities Exchange Act of 1934 , in the European Union under Article 12 of the Market Abuse Regulation , in Australia under Section 1041A of

455-620: The California claims in the Comstock Lode. Mackay and Fair had the mining knowledge and Flood and O'Brien raised the money. The purchase price of the claims, later to become a fabulous source of wealth, was about $ 100,000. The original stock issue was 10,700 shares, selling for between $ 4 and $ 5 a share. The new firm gained control of the Consolidated Virginia Mining Company stock in 1873, and it

490-480: The Nevada Bank, enabling Flood to avert the collapse of the Nevada Bank following the speculation of its cashier in the wheat market. In 1882, Flood purchased the Rancho Santa Margarita y Las Flores . Stock manipulation In economics and finance , market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of

525-616: The San Francisco Stock and Exchange Board jumped to $ 25,000 each as a result of the excitement. Varied interests sought to obtain stock control of the rich properties and there came the inevitable crash in which many went to financial doom. The "Bonanza Kings" profited, however, and late in 1875 Flood and O'Brien sought to become leaders in finance. After producing $ 133,471,000, the Consolidated Virginia and California mines could not be operated profitably, but in

560-401: The buy and the sell side of a trade, often using a third party as a proxy to trade on behalf of the manipulator, for the purpose of generating activity and increasing the price. This is more involved than churning because the orders are actually fulfilled. In a bear raid there is an attempt to push the price of a stock down by heavy selling or short selling . This works with a company that

595-458: The company and move quickly to ensure they profit on a classic Pump & Dump scheme to liquidate their ill-gotten shares. (See pump and dump.) A pump and dump scheme is generally part of a more complex grand plan of market manipulation on the targeted security. The perpetrators (usually stock promoters) convince company affiliates and large position non-affiliates to release shares into a free trading status as "Payment" for services for promoting

630-476: The duped investors who are left holding a stock whose price subsequently falls. When a group of traders create activity or rumours in order to drive the price of a security up. An example is the Guinness share-trading fraud of the 1980s. In the US, this activity is usually referred to as painting the tape . Runs may also occur when traders are attempting to drive the price of a certain share down, although this

665-438: The entire mining world were hurtled into a fever of excitement by proof of early reports of richness of the mining claims. The first stock issue was converted into two issues of 108,000 shares each, and by the middle of 1875 the speculative value of the two mines were close to $ 1,000,000,000. Shares went as high as $ 710. It was said that in the first six months of 1875 the output of the mines averaged $ 1,500,000 monthly. Seats on

700-436: The know"). In the meantime, people in the know increasingly purchase the stock as it drops to lower and lower prices. When the short interest has reached a maximum, the company announces it has made a deal with its creditors to settle its loans in exchange for shares of stock (or some similar kind of arrangement that leverages the stock price to benefit the company), knowing that those who have short positions will be squeezed as

735-419: The language of the street, the owners had "caught them coming and going." The Bonanza firm was said to be held together by Flood, though he was the most unpopular of the partners with the public, and was regarded by some as a stock manipulator . The advent of Flood and O'Brien, operating independently of Fair and Mackay, into the financial field met fierce resistance from William Sharon and William C. Ralston of

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770-485: The lower the bid or ask price is; thus the lower these Bashers can drive a stock price down by trying to convince shareholders they have bought a worthless security, the more shares the Investor Relations firm receives as compensation. Immediately after the stock conversion is complete and shares are issued to the Investor Relations firm, consultant, attorney or similar party, the basher/s then become friends of

805-450: The market, thereby gaining an advantage over slower market participants. Cross-market manipulation occurs when a trader trades in one market for the purpose of manipulating the price of an asset in another market, capitalizing off the price-moving effects thus generated, instead of with the bona fide intent of profiting off the trade itself. A type of manipulation possible when financial instruments are settled based on benchmarks set by

840-428: The mines, he returned east to marry Mary Emma Leary of County Wexford , Ireland. They were back in San Francisco by 1854. Flood had two children, Jennie who never married, and James Leary born in 1857. James Leary married Marie Rosina "Rose" Fritz, a burlesque dancer, who died in 1898. James L. had three children from his second marriage, James Flood (born 1900), Mary Emma Flood (Mrs. Theodore) Stebbins (born 1908), and

875-413: The orders are filled. The flurry of activity around the buy or sell orders is intended to attract other high-frequency traders (HFT) to induce a particular market reaction such as manipulating the market price of a security. Spoofing can be a factor in the rise and fall of the price of shares and can be very profitable to the spoofer who can time buying and selling based on this manipulation. Price-fixing

910-412: The partners began investing in mining stocks. The following year, Flood and O'Brien formed a partnership with fellow Irishmen James Graham Fair, a mine superintendent, and John William Mackay, a mining engineer. None of the four had impressed themselves on others than their immediate circle of friends and acquaintances until some time in the 1870s they joined forces in operating the Consolidated Virginia and

945-496: The price of the stock sky-rockets. Near its peak price, people in the know start to sell, and the price gradually falls back down again for the cycle to repeat. Quote stuffing is made possible by high-frequency trading programs that can execute market actions with incredible speed. However, high-frequency trading in and of itself is not illegal. The tactic involves using specialized, high-bandwidth hardware to quickly enter and withdraw large quantities of orders in an attempt to flood

980-591: The recipe: For a party of ten. Into a large punch-bowl place ten tablespoonfuls of bar sugar and ten tablespoonfuls of freshly squeezed lime or lemon juice. Add two jiggers of Curaçao and dissolve the whole in about a quart of effervescent water. Add two quarts of champagne and one bottle of good cognac . Stir thoroughly, ice, decorate and serve in thin glassware. 37°47′31.92″N 122°24′41.4″W  /  37.7922000°N 122.411500°W  / 37.7922000; -122.411500 James Clair Flood James Clair Flood (October 25, 1826 – February 21, 1889 )

1015-577: The rights to more than half of the world's deliverable silver. During the Hunts' accumulation of the precious metal, silver prices rose from $ 11 an ounce in September 1979 to nearly $ 50 an ounce in January 1980. Silver prices ultimately collapsed to below $ 11 an ounce two months later, much of the fall occurring on a single day now known as Silver Thursday , due to changes made to exchange rules regarding

1050-528: The same day or over multiple days with no consideration for the benefit of the client This scheme is usually orchestrated by online message board posters (a.k.a. "Bashers") who make up false or misleading information about the target company in an attempt to get shares for a cheaper price. This activity, in most cases, is conducted by posting libelous posts on multiple public forums. The perpetrators sometimes work directly for unscrupulous Investor Relations firms who have convertible notes that convert for more shares

1085-428: The security. Instead of putting out legitimate information about a company the promoter sends out bogus e-mails (the "Pump") to millions of unsophisticated investors (Sometimes called "Retail Investors") in an attempt to drive the price of the stock and volume to higher points. When the stock price and volume has reached a target level the promoter sells their shares (the "Dump") at the now elevated prices, taking money off

Pacific-Union Club - Misplaced Pages Continue

1120-490: The trading of physical commodities, for example in United States Natural Gas Markets. The manipulator takes a large long (short) financial position that will benefit from the benchmark settling at a higher (lower) price, then trades in the physical commodity markets at such a large volume as to influence the benchmark price in the direction that will benefit their financial position. Spoofing

1155-519: Was an American businessman who made a fortune thanks to the Comstock Lode in Nevada . His mining operations are recounted to this day as an outstanding example of what may be done with a rich ore body and a genius for stock manipulation . Flood piled up millions as one of the famed " Bonanza Kings " and is considered to have been one of the 100 wealthiest Americans, leaving an enormous fortune. He

1190-754: Was designed by Willis Polk . It is considered the first brownstone constructed west of the Mississippi River. Along with the Fairmont Hotel across the street, it was the only structure in the area to survive the San Francisco earthquake and fire of 1906 . Some notable citizens have been Pacific-Union Club members, including: Pacific Union Club Punch is a drink named after the Pacific-Union Club in William "Cocktail" Boothby 's 1908 work The World's Drinks And How To Mix Them with

1225-478: Was in this mine that the greatest silver bonanza in history was discovered in 1873. The ore body was more than 1,200 feet deep, which yielded in March of that year as much as $ 632 per ton. A little while after uncovering the "big bonanza" the price of the stock went skyward. Flood is traditionally credited with having directed the subsequent proceedings so far as stock market operations were concerned. San Francisco and

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