manipulation

n.

1. 1. The act or practice of manipulating.
   2. The state of being manipulated.
2. Shrewd or devious management, especially for one's own advantage.

[French, from manipule, handful, as of grain, from Latin manipulus, sheaf, handful. See maniple.]

The act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. It is much easier to manipulate the share price of smaller companies, such as penny stocks, because they are not as closely watched by analysts as the medium- and large-sized firms.

Also known as "price manipulation".

Investopedia Says:
One way people can deflate the price of a security is by placing hundreds of small orders at a significantly lower price than the one at which it has been trading. This gives investors the impression that there is something wrong with the company, so they sell, pushing the prices even lower. Another example of manipulation would be to place simultaneous buy and sell orders through different brokers that cancel each other out but give the perception, because of the higher volume, that there is increased interest in the security.

Related Links:
Here we explore why the media focuses on certain earnings manipulation cases in post-Enron Wall Street. A Case Study: Earnings Manipulation And The Role Of The Media
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Find out how this regulatory body protects the rights of investors. Policing The Securities Market: An Overview Of The SEC

Buying or selling a security to create a false appearance of active trading and thus influence other investors to buy or sell shares. This may be done by one person or by a group acting in concert. Those found guilty of manipulation are subject to criminal and civil penalties. See also Mini-Manipulation.

Any technique using the hands to produce a desired movement of a part of the body, or to return bones and joints to their normal position after displacement (see dislocation). Physiotherapists sometimes use manipulation to relieve stiffness in joints. It is a more rigorous procedure than mobilization.

The turning of a situation to advantage. Specifically, use of procedural devices such as changing the order of the agenda or the voting rules, or introducing new proposals not for their merits but to split an otherwise winning coalition.

Under Section 10 (b) of the Securities Exchange Act of 1934, 15 U.S.C. §78, refers to practices that are intended to mislead investors by artificially affecting market activity. 430 U.S. 462, 476. Such practices include wash sales or matched orders, i.e., buy and sell orders of substantially the same size at the same time to create a false impression of active trading, 405 S.W. 2d 457, or rigged orders. See also wash sale.

Skillful or dextrous treatment by the hands. In physical therapy, the forceful passive movement of a joint beyond its active limit of motion.

IN BRIEF: Operation with the hands. Also: Management with intent to deceive.

The basic tool for the manipulation of reality is the manipulation of words. — Philip K. Dick (1928-1982)

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