Pools

for the most part, have been terminated by the Interstate commerce law and by the national anti-trust law and the anti-trust laws of the various states. Also, the term pool is applied to a fund contributed by several persons for the purpose of undertaking a speculation. When a pool is formed in a stock in order to manipulate the stock the contributors to the pool (mutual fund) appoint a manager of it who conducts the operations in the stock. If it is a bull pool the first step is to buy as much stock as is desired at as low prices as po ible and then by means of wash transactions (see Washing) in the stock advance the price to a point where the stock actually held can be sold at a satisfactory profit. Ifit is a bear pool the first step is to sell short (sell stock not owned) to the extent desired at as high prices as ‘ po ible and then by means of wash transactions in the stock depre the price to a point where the stock actually sold short can be bought back at a satisfactory profit. 417