Stock Market Manipulation 1

Running Head: STOCK MARKET MANIPULATION

Stock Market Manipulation

[Name of the writer]

[Name of the institution]

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Stock market manipulation

There are fewer than two dozen institutions around the world of the "aristocracy of

finance" as JPMorgan Chase and Goldman Sachs, on that computer-based trade in high-

performance computers participating, which is therefore nanosecond counts. The manipulation

here gaping wide opens the floodgates, and simple traders and investors who are not this kind

Sci-Fi equipment on the "financial war" have seen themselves hopelessly inferior.

The stock market manipulation may relate to the idea of promotion of any stock of the

asset to sell at a lower price or increase the capitalization threshold of an important corporate. No

this particular. Another thing, when the market is manipulating a group of large brokers, in

whose hands have accumulated considerable money and client flows, which implies an impact

on stock market. In the last couple of years, especially after the collapse of 2008, financial

markets, particularly equity, has undergone irreversible changes who are deprived of sense to

rely on old dogmas and economic theories, including John (2004) recommendations on the

appraised value stock. Motley (2008) analyze the ratio of current stock prices, and an

extrapolation for the years ahead, we find that market expectations, at times becoming absurd.

Manipulation of stock market behavior, is the perpetrator away from free market

principles of supply and demand bidding, and to a variety of improper means, influences the

amount of stock market prices or securities trading, manufacturing, stock market illusion to

entice others to participate in securities trading for their own gain shift the risk of improper

behavior or interests.

Market manipulation, including: (1) alone or by pooling capital, stocks, or use the

information to jointly or continuous trading, manipulation of stock prices or securities

transactions; (2) collaborating with another person, by prior agreement time, price and trading
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securities for mutual affecting stock price or trading volume of securities transactions; (3) the

actual control of their own securities transactions between accounts, the price of securities

trading or securities transactions; (4) by any other means to manipulate the securities market.

However, the combination of conditions: access to cheap borrowing resources, excess supply of

free investment money that is withdrawn from the other, at the moment this is extremely risky

and hazardous to the sectors of the financial market. The very speculative activity has reached

unprecedented proportions, as in history there was no situation where both financial institutions

and non-financial companies, had pursued a single object for investment in the place where it

will effect fast and effective return on invested capital. The financial corporations are taking

advantage of unprecedented low-cost funding, crisscrossing the around the world in search of an

object to absorb or high returned to normal, and things there, no one does not produce, develop,

and only cares about increasing its market capitalization. When the "creation of the market" (by

matching buyers with sellers) was done strictly by human intermediaries in the hall of the Stock

Exchange, the manipulations and the front running were considered an acceptable price to pay

(though morally questionable) for markets continuously "liquid". Keiser argues that the front

running computer with the HFT has become the main activity on Wall Street and the main

driving force of most of the volume of trade, contributing not only to most of the gains from

trading but also to market manipulation economic and political purposes.

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References

Mtley, G., (2008). The Stock Pools and the Securities Exchange Act. Journal of Financial

Economics 51, 343-369.

John, T. S. (2004).We're still against fraud, aren't we? United States v. O'Hagan: Trimming the

Oak in the wrong season. St. John's Law Review