Market Manipulation
Chapters in this video
- 0:00 Wash trades: no change in beneficial ownership
- 1:40 Matched orders: prearranged two-party trades
- 2:57 Exempted securities trap: Treasuries and the antifraud rule
- 3:57 10-day notice before the record date
- 4:14 Issuer buyback safe harbor: the four lanes
- 5:58 Weekly block exception: volume only
- 6:46 Safe harbor as checkbox defense, not mandatory
- 7:14 Rapid-fire exam recap
What this video covers
- The market-manipulation prohibition: wash trades (no change in beneficial ownership), matched orders (prearranged two-party trades), pegging/fixing, false information, and inducing transactions through deception
- Why exempted securities such as U.S. Treasury securities escape the specific market-manipulation prohibition but remain fully exposed to the general antifraud rule and the broker-dealer manipulative-practices prohibition
- The broker-dealer manipulative-practices prohibition as the B/D-specific complement to the general antifraud rule, reaching all securities including exempted ones
- The 10-day corporate-action notification requirement: what triggers it (record date, not ex-date), what events require it (dividends, stock splits, reverse splits, rights offerings), and why late filing is a manipulation-style violation
- The four conditions of the issuer buyback safe harbor: manner (single broker-dealer per day), timing (no opening or last 10 minutes), price (highest independent bid or last independent transaction price), and volume (25% of Average Daily Trading Volume (ADTV) over prior four calendar weeks)
- How the weekly block exception works: it waives only the volume condition, never manner, timing, or price
- Why the safe harbor is a checkbox defense, not a mandatory obligation, and what losing it means for defending against manipulation charges
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 24 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.