Market Manipulation Vs Stock Manipulation

 

These days, you are listening Adani Group stock manipulation  case in India after coming Hindenburg report on 24th jan. 2023 and 1992 Harshad mehta case was of market manipulation and in 2010 NSE market manipulation scam. So, what are the both term and what is difference between both term is our today topic. 

Meaning 

Market Manipulation

When there cheating business in the market of any industry, it will be market manipulation. It includes speaking in the operation of market. Any market is based on truthful deal. If there is lie regarding price, product or service, it will live without base. In the stock market, market manipulation will be when there is false price create for any share of company

Way of Market manipulation

a) Inflate the market value of stock market by false social media post. 

b) When advisors starts to false advice for just earning their commission. 

c) Pump and Dump

In this some gang or cheaters first buy cheap stock and then start mouth marketing to artificial increase the price of its stock and then sell at same higher price and get profit and 9-2-11 and with this investor who bought these share on the basis of artificial price faces big loss. 

d) Price Fixing

Price fixing is also market manipulation in which some competitor fix specific price of specific product in the market like share price fixing. Now, buyer will buy at fix price instead free price. So, he has to pay higher price that actual share value. So, in future when they earn their profit, price fall and asset of buyer is not true but manipulated, so, it will fall like fall the building without base or weak base. 

e) Pools:

"Agreements, often written, among a group of traders to delegate authority to a single manager to trade in a specific stock for a specific period of time and then to share in the resulting profits or losses."

f) Bear Raids

Bear raid is technique in which decrease the price with heavy selling through original investor by spreading negative rumors of fear about a company and its stock when they got success, price will decrease with actual asset, so, they buy same cheap shares at cheap price in the open market

g) Short Selling 

First borrow the shares of a company or companies, then sell it in open market at low price and making fool other investors who got fear and started to sell the share and buy again artificial lowed price share and when price will stable, they earn big profit through this market manipulation technique of short selling. 

When borrow the share, he has to pay commission and interest on same share. 

Now sell in open market through artificial higher price, then market got more supply and bubble burst and less demand or less valuable for sale or less sale (Which is artificial ) and its price will decrease. 

Now again buy same share at low price and gain profit. 

Stock Manipulation

When manipulation is relating to specific shares of specific company or group of company, it will be stock manipulation, its aim is to cheat and get money from stock market. 

For Example, 

I have a company whose Share price is Rs. 100. I am owner of this company. Now, I will get only loan of Rs. 80 from bank but if I manipulate my stock by anyway like artificial buying my company share from one of  cheater team company at large scan and increase its price Rs. 1000 but actual my property is still Rs. 100, I just wants to artificially increase the price of my shares of Rs. 1000 and I will get Rs. 800 by security of inflated price of my shares through stock manipulation and one day this bubble will burst and both shareholder who bought their shares and bank will collapse through bankruptcy. 

All the ways of market manipulation can be used in stock manipulation.