Only in the short term. In the long run, all companies are valued by their return on investment. Companies that increase profits, rise in value.
If you don't like confidence-based valuations, simply use the old trusted and true buy and hold strategy. Only suckers trying get-rich-quick schemes get burned.
There are no laws against stock promotion. There are laws against fraudulently promoting stocks: a vast difference.
It's funny how you mock others perceptions of the world as delusional. You are a typical bigot who thinks that you Percieve the system in place and the government is made for the benefit of the people. LOL
I'm not even American and as a mockery of your limited knowledge on the subject, look up "the FACTORS that led to the FEDERAL reserve act" I think it is 1909 it was made. It is entirely made of Private owners like JP morgan, Barclays Bank (UK owned), HSBC (UK owned), the Rockafellers, and the list goes on of all these families and companies that always end up in conspiracy theories. Obviously you are afraid to do so! And again I will reiterate, I dont want you to research what it is?, but why it is?
And secondly, I know of people who were part of the hit on wall street, so I have first hand evidence of what they were trying to accomplish. They did not and still do not wish to make profit from it. They knew from the beginning that if they did, they would get screwed by the authorities with market manipulation. So in the end, now that the stock price is coming down, they will lose their money and the Hedge funds again win.
To further push my point, they limited or stopped further purchases or sales of shares (which is illegal, so they could not do what the hedge funds do, which is to wait until the price is squeezed out of the stocks (which is illegal). So this group did the opposite to the Illegal short Sell.....
You made the point above that a company is a good as its sales... LOL, so how did the valuation of the capital of the company Multiply just from the purchase of Shares alone. Sales were not even considered in the price of the company, it was all based on Shares.... This exposed the scam of companies being more controlled by shares (Confidence) than it is on direct sales, and thus dividends are based on Market speculation. Companies can go flat bust even if the sales are at a max, because the Investors will pull out, this usually causes a chain reaction in that banks have an excuse not to give the company loans and stop the production or stop its license in its tracks. It is controlled and completely corrupt... it would be fine except that the Governments of all countries that have stock-markets underwrite the debt, so the Public always loses.... But dumb azzes like yourself don't read between the lines and wander how a simple mass purchase of shares can cause big companies Massive billion dollar losses. DUh! But of course I am smoking dope....
People said the same thing about the Housing price Bubble in the USA, but it burst anyway, and the public tax payer lost out again (as did those that purchased property at the height of the bubble!) But I guess I dont understand the scam... The same will happen in the UK soon as the average house price here is now 200000 when the average wage is 23000.... Go figure... All those dumb azz people who will lose out who buy now.... Markets are corrupt.... Lets see how this Demand structure works, the markets make people believe that they must buy now or it will continue to rise, so they get desperate and buy at dumb azz prices. So the demand is artificially created, even though it is real... But at the same time repossession rate is also massive, and often larger than the So called demand.... If the two statistics were tied together (which they should be) the public would see the farce and not buy, and the bubble would never grow,,, but the trusting public is screwed by both the companies and the Government does NOTHING!
Same is done with these companies with sales. Even if "Games stops" sales were massive, they could make resounding losses due to the speculation in prices... the banks could then not give them essential loans etc due to stock prices and within a few weeks the production to sales cost results in losses due to the Banks handling of the speculation.... But when someone shows how easy the system is to manipulate, they call it illegal and stop it so that the hedgefunds (who the government officials place their money in) can make money again.
Buying stocks is a short Squeeze and this is not illegal. Even if it is concerted, because it can always lose money tomorrow and all is again lost, so what they did was not against the law... But what hedgefunds do is a short sell which is illegal, as selling stocks can collapse companies as they have to pay dividends on the losses to the stock holders and boom collapsed companies... Large companies like Microsoft and Intel have used these techniques (directx and the paying off companies to not use 3Dnow tech) to screw their competition to deplete their stock value... But AMD and Microsofts opponents stayed in business as they kept suing them. AMD lived for a long time of the law suit money off Intel.
Get a clue mate!