Types of Market Manipulation

What this video covers

• Why every manipulation scheme is either fake information (market rumors, pump and dump) or fake trading (wash trading, painting the tape), and how that binary unlocks exam questions
• The three strict elements required to prove churning: rep control of the account, excessive trading given customer objectives, and intent to defraud or reckless disregard
• The critical distinction between front running (trading ahead of a customer order) and insider trading (using material nonpublic information from a corporate source)
• Why only market makers can be guilty of backing away, and what refusing to honor a firm quote looks like on the exam
• The one-person versus multi-party distinction between wash trading (one person, no beneficial ownership change) and matched orders (two or more prearranged parties)
• Why freeriding (a cash account settlement violation under Regulation T) and withholding (an initial public offering allocation abuse) are entirely separate violations despite sounding paired
• How marking the close and marking the open artificially hijack the official price at the bell, and why the mechanics are identical except for timing