Ghosting
An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. Ghosting is used by corrupt companies to affect stock prices so they can profit from the price movement. Investopedia Says:
This practice is illegal because market makers are required by law to act in competition with each other. It is known as "ghosting" because, like a spectral image or a ghost, this collusion among market makers is difficult to detect. In developed markets, the consequences of ghosting can be severe. Related Terms:
Accommodation Trading
Free Riding
Manipulation
Market Maker
Market Maker Spread
Securities and Exchange Commission - SEC
Securities Exchange Act of 1934
Stock
Two-Sided Market |