Manipulative, Deceptive, and Fraudulent Devices

What this video covers

• The catch-all prohibition against any manipulative, deceptive, or fraudulent device, practice, plan, program, design, or contrivance under NASAA policy
• Wash trades and the zero-change-in-beneficial-ownership test, including why different account names do not save a scheme when one person controls both sides
• Matched orders as coordination of size, time, and price between two or more parties to create false trading appearance
• The bona fide agency cross transaction exception and why matching real independent buyers with real independent sellers is permitted
• Painting the tape as a sustained series of transactions with purpose to artificially move price and induce others to trade
• How to distinguish all three manipulation types using the number of parties involved and whether the activity is a single trade or ongoing campaign
• Why malicious intent separates prohibited matched orders from ordinary broker-dealer business