Market manipulation

Market manipulation is strictly illegal in many countries. Fraudulent traders can spread false information in the market, which can then result in price movements thus enabling illegal profiteering. Usually, manipulative market conduct is trade-based, and it includes generalized and time-specific manipulations. Actions that can create an artificial shortage of stock, an impression of false activity, and price manipulation to gain criminal benefits are included in this category.

Both of the terms discussed here are relevant to the financial crime. However, there is a possibility of developing blockchain-based systems that can thwart market abuse due to its transparency and security properties.

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