Market Manipulation
Market manipulation refers to actions taken by individuals or groups to artificially influence the price or demand of a financial asset, such as stocks or cryptocurrencies. This can involve tactics like spreading false information, creating misleading trading volumes, or coordinating trades to create a false impression of market activity. Such practices can mislead investors and disrupt the normal functioning of the market.
Regulatory bodies, like the Securities and Exchange Commission (SEC) in the United States, monitor for signs of market manipulation to protect investors and ensure fair trading practices. Penalties for engaging in market manipulation can include fines, bans from trading, or even criminal charges, depending on the severity of the actions.