Market manipulation
Also called: price manipulation
Deliberately distorting a share's price or trading activity, for example through misleading information or fake trades, to profit at others' expense.
Manipulation includes spreading false or misleading information, trading among related parties to create a false impression of demand (sometimes called circular trading), and pump-and-dump schemes. It is prohibited under SEBI's regulations.
Small, illiquid companies are the easiest to manipulate, because little money is needed to move their prices.
Learn more in these lessons
- Pump-and-dump schemesHow does a pump-and-dump scheme work?
- Market manipulationHow is the stock market manipulated, and how is it caught?
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