ECONOMICS
MARKET FAILURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
False
|
|
|
True
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Q: Can market makers manipulate stock prices? Market makers can influence stock prices by buying or selling stocks in large trading volume. However, regulatory bodies aim to prevent any form of exploitation by market makers.
Detailed explanation-2: -Market manipulation may involve techniques including: Spreading false or misleading information about a company; Engaging in a series of transactions to make a security appear more actively traded; and. Rigging quotes, prices, or trades to make it look like there is more or less demand for a security than is the case.
Detailed explanation-3: -So investors rightfully wonder whether the stock market is rigged. Technically, the answer is of course, no, the stock market is not rigged but there are some real disadvantages that you will need to overcome to be successful small investors.
Detailed explanation-4: -Rampproofing. Pools. Churning. Stock bashing. Pump and dump. Runs. Ramping (the market) Wash trade. More items