Module 3 of 4 in Scams, myths and investor protection
Myths, manipulation and advice
How market manipulation works, common stock market myths, the line between education, research and advice, and using SEBI's investor resources.
4 lessons in this module. Progress is saved in your browser as you go.
This module covers the wider landscape: how prices can be manipulated, the myths that make people easy targets, the legal difference between education and investment advice, and the official resources that help investors check claims.
By the end of this module you should be able to
- Describe common forms of market manipulation and why they are illegal.
- Correct common myths about the stock market using evidence.
- Distinguish education, research analysis and personalised investment advice under Indian regulation.
- Use SEBI's investor resources, warnings and registers to check information.
Lessons in order
Module test
10 questions, chosen at random from a bank of 32 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- Pump-and-dump schemes: Pump-and-dump is one form of manipulation; this lesson places it among the others.
- How stock exchanges work: Several kinds of manipulation work by abusing the order book and matching described there.
- How to spot a stock market scam: Many scams rely on the myths in this lesson, so the warning signs there connect directly to them.
- Undisclosed conflicts of interest: Much of the confusion between education and advice comes from people selling something, covered there.
- Unregistered and unauthorised intermediaries: That lesson lists who must be registered; this one explains where the line falls for advice and research.
- How to verify a claim and report a fraud: That lesson introduces the registers and complaint routes; this one shows the wider set of resources.