Market manipulation
As market manipulation a set of practices is called, by unfair measures to influence the price discovery in markets to achieve unjustified profits. These practices are banned in many countries. From an economic perspective, market manipulations lead to inefficiencies.
Legal definition
A legal definition of market manipulation can be found in § 20a WpHG, then banned as market manipulation in Section 1:
- " to make false or misleading information about circumstances which are relevant to the valuation of a financial instrument ... "
- " Make or buy businesses or to issue orders to trade are likely to give, false or misleading signals as to the supply, demand or the stock exchange or market price of financial instruments or to bring about an artificial price level " or
- " undertake other acts of deception, which are suitable to the domestic stock exchange or market price of a financial instrument to influence ... ".
Price maintenance is typically no market manipulation ( § 20a para 2 German Securities Trading Act ).
Forms of market manipulation
Stock spam
In stock spam is defined as the mass sending of e- mails ( spam) with advertising for a stock to drive the price up. This practice is also contrary to Section 7 of the Press Code, which regulates that " editorial publications are not influenced by personal or business interests of third parties, or by personal economic interests of journalists ' allowed.
Cornering
Cornering is a rest drew lots as possible purchase of product groups or classes of shares, to determine the price. Thus, the Hunt brothers drove in their silver speculation the price of silver from 2 to 50 dollars by buying the market yet.
Scalping
Under Scalping (English to scalp " scalp, the skin over the ears pull " ) refers to the actions of some fund managers, publishers of financial newsletters, financial journalists and other colloquially sometimes " market gurus" called people to at a favorable rate market close shares mostly small businesses Buy and subsequently targeted to sow positive reports about the security and to recommend it to the public for purchase.
Legal situation in Germany
A number of laws and regulations in Germany serves to prevent market manipulation:
- § 20a WpHG German Securities Trading Act ( " prohibition of market manipulation " )
- Market Manipulation Definition Regulation
- § 38 para 2 Stock Exchange Act
For the investigation and prevention of market manipulation is primarily in Germany, BaFin is responsible. In addition, the respective Exchange Commission as well as the public prosecution has competencies.
At European level, since 2003, the Market Abuse Directive ( Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation).
Legal situation in Austria
In Austria provides 48cVorlage §: § / Maintenance / RIS search Stock Exchange Act market manipulation punishable. The exact conditions for the application can be found in § 48aVorlage: § / Maintenance / RIS search para 1 2 Stock Exchange Act. For the pursuit of market manipulation, the FMA is responsible.