SFC in Action 4 – Scam Puzzle Episode 2: Market Manipulation – Hong Kong TV
In the latest episode of the SFC in Action series, we dive into the issue of market manipulation. Market manipulation occurs when someone intentionally interferes with the free and fair operation of the market for their own gain. This can take many forms, such as spreading false information, engaging in wash trading, or manipulating stock prices.
One common tactic used in market manipulation is known as pump and dump. In this scheme, fraudsters artificially inflate the price of a stock by spreading false or misleading information, enticing unsuspecting investors to buy in. Once the price has been driven up, the fraudsters sell off their stake at a profit, leaving other investors holding the bag as the stock price plummets.
It’s important for investors to be vigilant and do their due diligence before making any investment decisions. By staying informed and skeptical of any too-good-to-be-true claims or sudden spikes in stock prices, investors can protect themselves from falling victim to market manipulation schemes.
The Securities and Futures Commission (SFC) plays a crucial role in detecting and investigating cases of market manipulation. Through their enforcement actions and regulatory efforts, the SFC aims to maintain the integrity and stability of the financial markets in Hong Kong.
If you suspect that you may have been a victim of market manipulation or have information about suspicious activities, you can report it to the SFC for further investigation. Remember, staying informed and staying cautious are key to protecting yourself in the complex world of finance and securities.
