It is better for you as an investor – whatever your goal in investing – to know various forms of crime in this capital market. What for? Yes, so at least you are aware and know, because – as with other forms of crime in the capital market can also lurk anyone. Especially those who have not enough knowledge and experience. Additionally, you can go to https://magodomercado.com/aprenda-como-investir-na-bolsa-de-valores-comecando-do-zero/ if you want to know more about stock investments.
Well, let’s look at one by one of the various forms of crime in the capital market that often occur. Actually everything is categorized in 3 big groups, such as:
1. Fraud or fraud
It looks like fake investment cases can be included in this category of fraud or fraud. And, sadly, the more here, the more we encounter bulging investment cases that are finally revealed.
So, it’s good we are careful. Do not be easily tempted, especially for something that is “too good to be true”.
2. Capital market manipulation
Capital market manipulation is usually more “neat” playing. Sometimes, so neatly, that it can’t be seen clearly in plain view.
Manipulation of the capital market is divided into several more forms. That is:
Marking the close
The form of manipulation is an attempt to engineer stock prices at or near the close of trading.
Wash sale or pseudo transaction
A wash sale is a form of market manipulation in which market participants try to influence the stock price by buying and selling the shares themselves or among their groups
Corner a market
This crime is a form of market manipulation in which market participants monopolize certain shares so that no other investor can buy or buy these shares.
Creating false demand and supply
Creating artificial demand and supply is a form of stock market manipulation that can be called an “agreement” between a buyer and seller of shares, which places buy and sell orders at the same time.
Front running is a form of stock market manipulation in which there are actors who transact shares before their time or precede others.
3. Insider trading
This involves certain parties in a company (‘insider’) who provide information that is actually not yet released to the general public to other parties, for personal gain.