The act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. It is much easier to manipulate the share price of smaller companies, such as penny stocks, because they are not as closely watched by analysts as the medium- and large-sized firms.

Also known as "price manipulation".

One way people can deflate the price of a security is by placing hundreds of small orders at a significantly lower price than the one at which it has been trading. This gives investors the impression that there is something wrong with the company, so they sell, pushing the prices even lower. Another example of manipulation would be to place simultaneous buy and sell orders through different brokers that cancel each other out but give the perception, because of the higher volume, that there is increased interest in the security.

Investment dictionary. . 2012.

Look at other dictionaries:

  • manipulation — [ manipylasjɔ̃ ] n. f. • 1762; « traitement du minerai d argent » 1716; calque de l esp. manipulación; lat. manipulus « poignée » 1 ♦ Action, manière de manipuler (des substances, des produits, des appareils). Appareil d une manipulation délicate …   Encyclopédie Universelle

  • Manipulation — Ma*nip u*la tion, n. [Cf. F. manipulation.] 1. The act or process of manipulating, or the state of being manipulated; the act of handling work by hand; use of the hands, in an artistic or skillful manner, in science or art. [1913 Webster]… …   The Collaborative International Dictionary of English

  • Manipulation — Sf std. (18. Jh.) Entlehnung. Entlehnt aus frz. manipulation, einer Ableitung von frz. manipuler zum eigenen Vorteil beeinflussen , älter: chemische u.a. Substanzen handhaben , zu frz. manipule eine Handvoll (Kräuter), Bund , aus l. manipulus m …   Etymologisches Wörterbuch der deutschen sprache

  • manipulation — c.1730, a method of digging ore, from Fr. manipulation, from manipule handful (a pharmacists measure), from L. manipulus handful, sheaf, bundle, from manus hand (see MANUAL (Cf. manual)) + root of plere to fill (see PLENARY (Cf. plenary)). Sense… …   Etymology dictionary

  • Manipulation — »geschickte Handhabung, Handgriff, Kunstgriff; Machenschaft«: Das Fremdwort wurde Ende des 18. Jh.s – zuerst als Bezeichnung eines Heilverfahrens – aus gleichbed. frz. manipulation entlehnt. Dies ist eine Bildung zu frz. manipule »eine Handvoll«… …   Das Herkunftswörterbuch

  • Manipulation — (v. lat.), jede Verrichtung mit der Hand, wozu bes. Geschicklichkeit der Finger nöthig ist …   Pierer's Universal-Lexikon

  • Manipulation — (lat.), der kunstgerechte Gebrauch der Hände; dann allgemein soviel wie Geschäftskniff; manipulieren, Manipulationen vornehmen …   Meyers Großes Konversations-Lexikon

  • Manipulation — (lat.), kunstgerechte Handhabung, Anwendung der nötigen Handgriffe, insbes. bei heilkünstlerischen Verrichtungen; Verfahren, Geschäftskniff. Manipulieren, handhaben, M. vornehmen …   Kleines Konversations-Lexikon

  • Manipulation — Manipulation, lat. dtsch., die kunstgerechte Anwendung der Hand bei einer Verrichtung, geschehe diese mit od. ohne Instrument; davon das Zeitwort manipuliren …   Herders Conversations-Lexikon

  • manipulation — index act (undertaking), connivance, contrivance, machination, management (judicious use), maneuver (tactic) …   Law dictionary

  • manipulation — [mə nip΄yo͞o lā′shən, mə nip΄yəlā′shən] n. [Fr < manipuler, to manipulate < manipule, pharmacist s term for a handful, orig., a bundle of herbs < L manipulus: see MANIPLE] a manipulating or being manipulated; skillful handling or… …   English World dictionary