Manipulation of stock price and its consequences

Abstract

With expansion of financial markets and capital market and also existence of so many buyers and sellers who are looking to gain from their trades, manipulation has taken a new display. Forgers are able to manipulate the trading activity of the stock market and offer a false display and mislead the investors and encourage them to buy their shares. Manipulation in capital market can cause investors to be uncertain to the capital market and it is an obstacle to market depth. Certain controls and special regulations needed to deal with this phenomenon in order to avoid distorting the minds of investors and confronting false prices.