7:10:32 AM

Market Abuse

Front running | Purchasing shares ahead of someone else after knowing his intention to buy. Brokers are usually privilleged with foreknowledge of their client's intention to buy, especially if they put a market order.

Insider trading | Purchasing shares with privilleged information usually only available to decision makers of the company before it goes public.

Spoofing | Putting a large purchase order and cancelling it shortly after to create the impression of rising share prices.

Round-tripping | Investors collude of shares to drive up a company's share prices without an increase in the company's actual earnings. Two companies can also round-trip by buying each other's shares.

Wash trades | Trades that are bought and sold to feed misleading information to the market. Wash trades can be executed by a trader, broker or both. When the trades are bought and sold at high frequency, it can create the perception that a security is in demand and attract other investors to buy them.