Use of Manipulative or Deceptive Devices

What this video covers

• The one-sentence manipulative and deceptive devices rule, and why it contains zero stated exceptions or thresholds
• The difference between effecting any transaction and inducing a purchase or sale
• Why inducing alone can violate the rule even when no trade is completed
• How manipulative, deceptive, and other fraudulent devices are three alternative means, not cumulative requirements
• Why the rule applies to any security, with no equity limitation or dollar threshold
• How this rule differs from trading ahead of customer orders based on instrument, conduct, exceptions, and thresholds
• Why an institutional or riskless principal exception under the trading ahead rule does not protect deceptive underlying conduct