My Actifit Report Card: April 8 2024

Introduction

Manipulation of stock markets is possible, so financial market authorities exist to limit this manipulation. Capital markets authorities try to create an efficient market by arresting violators or manipulators and fining them.

Violations or let's say manipulation vary. Sometimes we see an attempt to create an imaginary price for a “share” by rotating the stock into portfolios whose owners have agreed to buy and sell through these portfolios belonging to them, creating an unreal price for the stock, and with the entry of other buyers who are sold to and get rid of the shares and then share the profits between these portfolios. According to pre-determined ratios, and depending on the portfolio’s capital, there is no objection to others from outside the alliance participating.

The second manipulation, which is the most dangerous, is providing false information, or rather misleading information, to the authorities supervising the market to influence the share price.

Executives within the company usually benefit from this, as they benefit from providing this misleading information by creating an unreal price for the share. They may bypass the regulations and own more than Five percent of the company's shares and they do not disclose this, and then they sell them and make profits fraudulently.

Unfortunately, some manipulators do not look beyond the tip of their noses, because it is difficult for people to trust them in their future projects, and they have acquired a bad reputation that is difficult to erase easily, moreover, the bad influence may extend to others, forgetting that “if someone made a mistake that doesn’t mean others are bad too.”

The other matter is that manipulation opens the door to gloating from non-lovers and gloating may be harsher than the punishments imposed on the violator.

Conclusion

The beautiful thing is that most of the time Capital Market Authorities struck violators with an iron hand and punished them, yet more control from the Authority is needed to create an efficient market.

Or we should all turn to cryptocurrency to get rid of all these outdated systems?
This report was published via Actifit app (Android | iOS). Check out the original version here on actifit.io

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