Market abuse · Question 8 of 12
Which behaviour constitutes prohibited market manipulation?
1 answer is correct. Easy
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Answer
- C Spreading false information to move the price
Explanation
Market manipulation occurs, for example, when someone gives misleading signals about supply, demand or price or spreads false information. A well-known pattern is "pump and dump": prices are talked up, and then the initiators sell. This is prohibited and a criminal offence.