Manipulation

(redirected from Market manipulation)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to Market manipulation: insider trading

Manipulation

Dealing in a security to create a false appearance of active trading, in order to bring in more traders. Illegal.

Manipulation

The attempt or act to artificially change the price of a security or a market movement with the intent to make a profit. One example is wash selling, in which an investor both sells then quickly re-buys the same security, hoping to create the impression of increased trading volume, and therefore raise the price. Another is churning, in which an investor makes both buy and sell orders through different brokers to create the impression of increased interest in the security and raise the price. Manipulation can be used to both increase and decrease prices, depending on the investor's perceived needs. Manipulation is illegal under the Securities Exchange Act of 1934. See also: Antitrust, Fix.
References in periodicals archive ?
As it stands, the only possible reversal -- though unlikely -- is should the supreme court reverse its own decision of December 6, thereby making the market manipulation charges valid again.
The language of the proposed regulation is sufficiently flexible to respond to changes in market manipulation, while the doctrinal hurdles described appropriately limit FERC's enforcement ability.
Market manipulation offences punishable by a four-year jail term would include entering into a transaction or placing an order which gives false or misleading signals about the supply, demand or price of one or more financial instruments or providing false or misleading inputs to manipulate the calculation of benchmarks, such as the London Interbank Offered Rate (LIBOR) or Euro Interbank Offered Rate (EURIBOR).
That means making it easy for people to change supplier to save money, it means regular market assessments to check their behaviour, and it means tougher penalties for market manipulation and putting an end to opaque finances.
Experts fear scrupulous could use social media and other online platforms to conduct their market manipulation activities.
Regulation 1227/2011 supplements financial market regulations, including Directive 2003/6 on insider trading and market manipulation, and the directive on markets in financial instruments (2004/39).
The blackouts and associated price spikes were "not the result of market manipulation or an abuse of market power," the report said.
Korean financial authorities have probed Deutsche's Hong Kong unit as well as the German bank's securities unit in South Korea to see whether they engaged in market manipulation or unfair transactions on November 11, the report noted.
The case, in which two Norwegian day traders were found guilty of market manipulation by working out how a broker's algorithm worked and trading against it, has exacerbated fears that the markets are no longer a level playing field, causing retail trade to withdraw from the market.
The Eastern Magistracy in Hong Kong has convicted Ng Kwok Leung, a former account executive of Sun Hung Kai Investment Services, on one charge of market manipulation following an investigation by the Securities and Futures Commission (SFC).
The FMA has decided Meinl Bank is guilty of market manipulation and misleading clients with deceptive advertising.
Even Alistair Darling admits that this blatant market manipulation carries a real risk of destabilising the recent fragile economy.