How is a stock price manipulated down so it can be bought at a lower price?

I heard that the price is driven down to get other owners of the same stock to panic and sell. Then the ones driving the stock down buy it back at the lower price. Is this true?|||There are many ways to do that.





The most convincing argument is the stock price itself. If you have enough fire power, you can drive the stock price down by shorting it to bring out the sellers and buying back and more at a lower price.





Or you can get a clown like Jim Cramer to yell "sell" on CNBC, or otherwise strategically place "articles" or "opinions".





You can get an analyst to downgrade the stock or "express concern over valuation".





Sometimes staying silent and not expressing an opinion when everybody is expecting it will do the trick - for example, a broker that brings a hot stock to market cannot talk about it for 30 days. If they don't say anything after the silent period is over, people get nervous and assume the worst.|||it does happen. This is why Jim Cramer got into all that trouble earlier this year. A holding group will sell off shares to scare the smaller investors, which in turn causes them to sell off their positions. So as the price falls, the group will begin to buy back their original shares, just at a lower price...