Is it illegal to engage in market manipulation in a securities fraud case?

Yes, it is illegal to engage in market manipulation in a securities fraud case in California. According to California Penal Code Section 246, market manipulation is illegal and punishable by up to five years in prison and a fine of up to $10 million. Market manipulation is the intentional and deceptive use of orders, prices or other activities on the market to give traders false information about a security’s price. For example, a trader might place a large order to buy a security at a given price, which would not show up on the market as a legitimate trade and thus mislead other traders into thinking its value had increased. In addition, traders may also manipulate prices by spreading false rumors, issuing false press releases, or using other deceptive tactics. All forms of market manipulation are illegal in California, as they give investors false impressions of the security’s actual value and are frauds upon the buyers and sellers of the security. Furthermore, it is illegal for traders to collude with each other to manipulate the price of a security, as it again leads to unjustified increases or decreases in price, which are to the detriment of the public. In order to protect investors in securities from being victims of market manipulation, California has stringent regulations in place that impose penalties on those who engage in fraudulent behavior in securities markets. If a person is found guilty of engaging in market manipulation in California, they could face severe criminal penalties, such as a long prison sentence and heavy fines.

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Is it illegal to engage in market manipulation in a securities fraud case?

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