Market Manipulation

Conduct that creates a false appearance of market activity or price: pump-and-dump promotions, wash trades (trading with yourself), matched orders, spoofing/layering with fake orders, and marking the close.

All manipulation violates the Exchange Act of 1934’s antifraud provisions. Penny stocks are the classic pump-and-dump vehicle because thin markets are easy to move — one reason they carry their own disclosure rules.

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