Share Pricing and Current Value


I've been searching the forums for quite a while now, but haven't found a definitive answer to my question yet, so here it is:

Let's say company's shares are valued at 100.00 AS$ after the daily stock market price tick. I decide to sell some of the shares I own at 10% premium, making the price 110.00 AS$. Now the current value is at 110.00 AS$. Can I make another transaction that same day and ask for 10% premium for the share; asking, instead of 110.00 AS$, this time 121.00 AS$?

I can see that this could lead into share price manipulation, selling small batches of shares and increasing the current price in order to get higher price for a large batch after the smaller transactions. However, I can also see that there is merit for being able to trade those shares at the price where people are willing to buy them, despite it being more than 10% of the original current price, especially with companies that are growing fast.

So please let me know is this practice allowed and what counts as share price manipulation in the simulation. I'm taking my first steps at the stock market and wouldn't like to break any rules accidentally.

Thank you for your replies!

No, it's not possible. The 10% premium is always dependent on your actual value of the company. The current valuation does not change with shares traded at higher or lower prices.

And no, manipulating share prices is deemed cheating and is not allowed.

Thanks Matth, for your reply.

A follow up related to the previous question:

A while back I sold some of my company's shares to test how the market works. I sold some of my subsidiary's shares at a premium of a bit under 10%. After that transaction a company made a buy order that was well above the 10% premium of the original current value. I wasn't interested in that offer, because I was just testing the market function, but theoretically if I would have accepted that offer wouldn't that be counted as cheating, since it deviates from the actual value more than 10%; albeit the offer wasn't made by me, the presumed beneficiary?

In the meantime your company must have earned some money and your equity has increased. That's why the other player could offer a higher price.

He key word is current value not listed value. In the time being the current value may have jumped by 10% or more because of one of the company. The system definitely does not allow for posting offers more than 10% based on the immediate current value.

Now, there is a possibility the company in question might have artificially increased its current value at that moment . But then, for them to make an offer to buy shares from a non related third party, what would be the point to pay more than they actually need to?

one thing to note (since you're worried about accidentally breaking the rules) is that it's not just illegal to buy/sell at a price deviating more than 10% from current valuation, it's simply not possible. Just try it: post a sell order at the "wrong" price. You will get an error.