- Market manipulation
Market manipulation describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency. Market manipulation is prohibited in the United States under Section 9(a)(2) of the Securities Exchange Act of 1934, and in Australia under Section s 1041A of the Corporations Act 2001. The Act defines market manipulation as transactions which create an artificial price or maintain an artificial price for a tradeable security.
- Pools: "Agreements, often written, among a group of traders to delegate authority to a single manager to trade in a specific stock for a specific period of time and then to share in the resulting profits or losses."
- Churning: "When a trader places both buy and sell orders at about the same price. The increase in activity is intended to attract additional investors, and increase the price."
- Runs: "When a group of traders create activity or rumors 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 trader(s) are attempting to drive the price of a certain share down, although this is rare.
- Ramping (the market): "Actions designed to artificially raise the market price of listed securities and to give the impression of voluminous trading, in order to make a quick profit."
- Wash trade: "Selling and repurchasing the same or substantially the same security for the purpose of generating activity and increasing the price"
- Bear raid: "Attempting to push the price of a stock down by heavy selling or short selling."
- ^ http://www.asx.com.au/supervision/participants/market_manipulation.htm
- ^ http://www.sec.gov/divisions/corpfin/34act/sect9.htm
- ^ Mahoney, Paul G., 1999. The Stock Pools and the Securities Exchange Act. Journal of Financial Economics 51, 343-369.
- ^ Painting The Tape
- ^ Sanford: Overview
- ^ Bear Raid: Definition and Much More from Answers.com
Stock market Types of stocks Participants Exchanges Stock valuation Financial ratios Trading theories
and strategiesAlgorithmic trading · Buy and hold · Contrarian investing · Day trading · Efficient-market hypothesis · Fundamental analysis · Market timing · Modern portfolio theory · Momentum investing · Mosaic theory · Pairs trade · Post-modern portfolio theory · Random walk hypothesis · Style investing · Swing trading · Technical analysis · Trend following
Related termsBlock trade · Cross listing · Dark liquidity · Dividend · Dual-listed company · DuPont Model · Flight-to-quality · Haircut · IPO · Margin · Market anomaly · Market capitalization · Market depth · Market manipulation · Market trend · Mean reversion · Momentum · Open outcry · Public float · Rally · Reverse stock split · Share capital · Short selling · Slippage · Speculation · Stock dilution · Stock split · Trade · Uptick rule · Volatility · Voting interest · Stock market index
Wikimedia Foundation. 2010.
Look at other dictionaries:
market manipulation — The offence of illegally inflating or deflating the price of a security. London Stock Exchange Glossary … Financial and business terms
stock market manipulation — /stɒk ˌmɑ:kɪt məˌnɪpjυ leɪʃ(ə)n/ noun the practice of trying to influence the price of shares by buying or selling in order to give the impression that the shares are widely traded … Dictionary of banking and finance
Market Intelligence — (often contracted to MARKINT) is a relatively new intelligence discipline that exploits open source information gathered from global markets. It relies solely on publicly available information such as market prices and ancillary economic and… … Wikipedia
Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… … Wikipedia
Market capitalization — (often market cap) is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and… … Wikipedia
Market sentiment — is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and … Wikipedia
Market Abuse Directive — (MAD) The directive on Insider Dealing and Market Manipulation (2003/6/EC). MAD is a measure under the Financial Services Action Plan which defines the behaviour considered to be market abuse and includes preventative measures aimed at making… … Law dictionary
manipulation — Dealing in a security to create a false appearance of active trading, in order to bring in more traders. Illegal. Bloomberg Financial Dictionary * * * manipulation ma‧nip‧u‧la‧tion [məˌnɪpjˈleɪʆn] noun [countable, uncountable] when someone… … Financial and business terms
Manipulation — Contents 1 As underhand influence 2 In a physical context 3 In technology 4 See also As underhand influence … Wikipedia
Market trend — Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are… … Wikipedia