Chapter-12 Flashcards
What is false trading and market rigging?
False trading and market rigging can be described as the use of artificial means or methods to influence the price of any securities, or to cause volatility without real basis in the market instead of letting natural market forces take place.
What is extraterritorial reach for market rules?
The rules apply to acts occurring in Singapore with respect to any capital markets products, whether listed or quoted in or outside Singapore2. If the act is deemed as misconduct in Singapore, it would also be deemed as misconduct even if the transactions take place outside Singapore. Similarly, the rules apply to acts occurring outside Singapore with respect to capital markets products listed or quoted on an organised market in Singapore. That is, the rules have extraterritorial reach.
What is wash sale?
A wash sale is a transaction effected through the market which involves no change in the beneficial ownership of any capital markets product.
What is matching order?
This involves the entering of an order for the purchase of
securities through a broker with the knowledge that a sales order for the same amount or price has been entered or will be entered into at about the same time by another party known to him through a different broker.
What is securities market amnipulation?
Market manipulation happens when a person (Person X) executes
trades using his account and the accounts of several of his customers
to trade at prices above the previous traded price. This has the effect of artificially maintaining or increasing the price of the security.
What is inside information?
Inside or “insider” information is information that is not generally
available, and if known would or would be likely to have a material effect on the price or value of securities, securities-based derivatives contracts or units in a collective investment scheme.
What is securities hawking?
Securities hawking refers to making an offer of securities, securities-based derivatives contracts or CIS units in an unsolicited meeting. The securities hawking prohibition aims to prevent pressure selling of
financial products to retail clients (e.g. “boiler room” practices,
badgering).
