Investors are affected by any actions of players within stock market regardless if it is illegal or legal. Market manipulation is quite common. There is an increase by up to 37 percent in the last 10 years as per SEC or Securities and Exchange Commission.
A Brief Definition of Market Manipulation
Market manipulation is basically the deliberate deception by traders, bankers, traders or analyst when trying to alter or misrepresent market prices.
The profit and competition are both at the core of market manipulation. Unfortunately, there’s general consensus that the Wall Street brokers like to do anything profit, whether it would damage other investor’s strategy or not in the process.
How Markets are being controlled?
One important thing that you should know is that, market manipulation is illegal in great number of countries. As a matter of fact, there are different manifestations of market manipulation. This comes in form of the following:
- Churning
- Ramping
- Wash trading
- Bear raiding
- Cornering and;
- Insider trading
As you may know, each method of market manipulation has different approaches on how to execute its objective. If you would like to learn more about each item mentioned above, it’s best to perform further research on the available resources online.
