So there is a possibility of investors get in to trouble and lost all their money due to unawareness about the fluctuations of market. People normally tend to react on sudden movements on stock market expecting huge profit. But these movements sometimes created by stock manipulators to cheat people and earn money. There are several well known cases on stock manipulation which some times resulted in change of ownership of companies. Manipulation of stock market are done by the people who have lot of stocks(money) and more power. Eg – Businessman, stock brokers.
Some techniques that are used by stock manipulators are not illegal but execute with the intention of cheat others. Some countries have laws against illegal stock transactions and it is mandatory (recommended) to have stock surveillance systems in such countries. Functionality of stock market surveillance system is to detect such manipulation in real time and report them. Stock surveillance systems are monitor the market for detect well known stock manipulation cases.
Following are some of well known stock manipulation techniques.