MARKET MANIPULATION

Market manipulation is when someone artificially affects the supply or demand for a security (for example, causing stock prices to rise or to fall dramatically).

Market manipulation may involve techniques including:

  • Spreading false or misleading information about a company;
  • Engaging in a series of transactions to make a security appear more actively traded; and
  • Rigging quotes, prices, or trades to make it look like there is more or less demand for a security than is the case.

Microcap stocks are more susceptible to market manipulation.  Learn more.

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