market manipulation
Artificial price distortion
Market manipulation is the deliberate attempt to interfere with free market forces to artificially inflate or deflate a security's price.
Tactics include spreading false information, coordinating trades to create misleading volume, or cornering supply.
The SEC investigated the firm for market manipulation after suspicious trading patterns emerged.
The practice is illegal in most jurisdictions because it undermines investor confidence and market integrity.
Fraudulent stock inflation scheme
- spoofingFraudulent imitation
- layeringForming successive strata
- corneringForcing into position
- churningAgitated circular motion
bear raid · front running · capping · pegging · ramping
Intentional misleading of others
- fraudIntentional criminal trickery
- exploitationSelfish use of others
- unfairnessUnjust or biased treatment
- greedExcessive desire for wealth
dishonesty · abuse of power · conflict of interest · predatory behavior · bad faith · moral hazard · unethical conduct · trust violation
Stock market regulator
- complianceAdhering to requirements
- enforcementCompelling compliance with rules
- oversightSupervision or inadvertent omission
- FINRABrokerage self-regulatory body
sanctions · penalties · investigation · surveillance · prosecution · whistleblower · disgorgement · cease and desist
Rapid, unpredictable changeability
- flash crashSudden, brief securities collapse
- wealth transferShifting assets between parties
- systemic riskEconomy-wide collapse potential
- contagionDisease spread by contact
Chronological record of transactions
- data analyticsExamining information for patterns
- red flagsIndicators something's wrong
pump and dump
Fraudulent stock inflation scheme
churning · bear raid · front running · capping · pegging · ramping
deception
Intentional misleading of others
- fraudIntentional criminal trickery
- exploitationSelfish use of others
- unfairnessUnjust or biased treatment
greed · dishonesty · abuse of power · conflict of interest · predatory behavior · bad faith · moral hazard · unethical conduct · trust violation
SEC
Stock market regulator
- complianceAdhering to requirements
- enforcementCompelling compliance with rules
- oversightSupervision or inadvertent omission
FINRA · sanctions · penalties · investigation · surveillance · prosecution · whistleblower · disgorgement · cease and desist · consent decree
volatility
Rapid, unpredictable changeability
- flash crashSudden, brief securities collapse
- wealth transferShifting assets between parties
- systemic riskEconomy-wide collapse potential
audit trail
Chronological record of transactions
- data analyticsExamining information for patterns
- red flagsIndicators something's wrong
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- business ethicscode of conduct, ethics code, codes of conduct, ethics training, ethics committee
- corporate crimescorporate fraud, securities fraud, insider trading, price fixing, embezzlement
- Corporate Powerlobbying, lobbyist, lobbyists, monopoly, oligarchy
- criminal schemesconspiracy, collusion, racketeering, kickback scheme, assassination plot
- economic ethicsfair wages, fair pricing, economic justice, economic fairness, wealth redistribution
market, marketing, manipulate, supermarket, marketplace, manipulation, marketer, marketable, manipulative