What is the market manipulation?
market manipulation is a practice in which people participate in activities that interfere with common operations of financial markets. Many nations have only a relaxed definition of market manipulation, because it is sometimes difficult to point out specific manipulative behavior, but people can still monitor manipulative activities and see that the effect of manipulation can have on the market. These practices are illegal in many regions of the world, although sometimes it can be difficult to distinguish between normal activity and market manipulation. As a result, it is a matter not only for individuals, but for the financial industry in general. When manipulation reduces the value of stock, for example in the air raid, other people who hold shares lose due to the manipulation of the market. When the market manipulation of something can be created by creating an inflated market value, the market as a whole suffers and can even drag the rest of the economy.
can be considered market manipulation. These practices often requestThey adhere to the cooperation of several individuals who work together, because few people have an impact on the market manipulation alone. Some examples of manipulative practices, including fast purchase and sale to make it look a lot of activity on a particular commodity, short -circuit that reduces the prices, detention or adding commodity inventory to control prices and "market increase" in which people try to push prices.
The problem with the market manipulation is that it creates an artificial image that massages the actual value of commodity commodity or group. Manipulators can use this for their advantage to earn a profit, yetColids who do not know about manipulation and who decide on the basis of available information to lose, sometimes substantially, as a result of manipulation. In fact, manipulators count and often earn profit from the loss of others.
Suspects of market manipulation can be investigated by financial regulators and other government officials. Can be prosecuted by differentMethods, depending on the nation and the nature of behavior. Defense of activities considered manipulative is often that they were normal, albeit slightly unethical, business activities and that no special intention of manipulating was involved by people who profit.