Coral Capital Partners looks at a recent SEC Enforcement Action concerning Market Manipulation, Broker Bribery, and Matched Trades. In our look at this enforcement action we provide a detailed explanation of how these schemes work and the penalties for participating in these schemes. We feel that our blog along with the associated SEC Litigation Release and Complaint filed in Federal Court will provide an interesting reading.
Tag Archive for wash trade
A wash trade is the process of buying (or selling) shares of a company through one broker while simultaneously selling (or buying) the same shares through a different broker dealer. In a wash trade there is no change in beneficial ownership of the shares by an individual or group of individuals. Wash trades can make the trading volume of a company’s shares appear to be much greater than it actually is. Wash trades are considered to be a form of market manipulation and they are a violation of various sections of the Securities Act of 1933 and the Exchange Act of 1934. They are subject to prosecution by the Securities Exchange Commission (SEC).