EQUITY MANIPULATIONS

16 May 2025, Version 1
This content is an early or alternative research output and has not been peer-reviewed by Cambridge University Press at the time of posting.

Abstract

In this paper, I have forged two shorter studies that both relate to my doctoral research field, to crimes committed in connection with stock exchange trading, and in particular to the topic of illicit market manipulation. In the first one, illustrated by American legal cases, I would like to try to talk about classical prohibited market manipulation, emphasizing the fact that, contrary to the American regulation, Hungarian national criminal law does not separate the two categories from the point of view of the direction of trading, expressis verbis. In the second one I deal with the iceberg order, which is strictly speaking not a capital market legal institution in Hungary, but a category codified by the internal regulations of the stock exchange (implemented from the EU). Since the lack of completeness or delay of information always poses an extra risk to stock market abuse, especially if it could be countered, it is important to formulate introductory thoughts on this phenomenon created by a legal institution that has not been the subject of legal research until now.

Keywords

market manipulation
pump and dump
poop and scoop
Securities and Exchange Act
illicit market manipulation
iceberg order
hidden order
stock exchange trading
order book
equal access to information
trading principles
institutional investors
investor’s protection

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