Pump and Dump Schemes
To entice investors, scammers willfully raise a stock’s price by disseminating inaccurate or misleading information. The scammers sell off their shares at a profit after the stock price reaches a predetermined level, which causes the stock price to crash and leaves gullible investors with significant losses.
Insider Trading
Insider trading is the practice of someone with access to a company’s confidential information buying or selling its stock in order to profit from that information. This is against the law and goes against the idea of equitable and fair access to information on the stock market.
Accounting fraud
Accounting fraud is the falsification of a company’s financial statements in order to give an inaccurate picture of its financial health or performance.
Bucketing
When brokers or financial advisors trade without authorization on their clients’ behalf, frequently churning their accounts to earn disproportionate commissions, this is known as bucketing.
Front-running
Front-running is the practice of traders taking use of their clients’ advance knowledge of pending orders to place trades for their own accounts ahead of those orders in order to profit from the expected price fluctuations.
Stock manipulation
Stock manipulation is the deliberate manipulation of supply and demand for a security in order to manipulate its price or give the impression that there is more activity in the market than there actually is.