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  • stock market manipulation can take many forms—such as artificially fixing prices higher or lower—with the aim of interfering with the market for personal gain.

    a trader can manipulate the market by processing a lot of small sell orders in an attept to drive down the price of a share. this can cause other shareholders to panic and sell their shares, sending the price down even further. conversely, a lot of small buy orders may push up a share price to convince other investors that good news is about to be announced. market manipulation is highly unethical but not always illegal.

    posting negative or positive information investors often like to discuss shares they own or are thinking of buying with other like-minded individuals on bulletin boards and investment forums. these can be a good source of investment ideas but they can also be used by unscrupulous traders who post negative or positive information to inflate or deflate prices.

    (see: libor scandal)