Abstract
In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based "pump-and-dump" price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.
Original language | English |
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Pages (from-to) | 788-797 |
Number of pages | 10 |
Journal | Emerging Markets Finance and Trade |
Volume | 51 |
Issue number | 4 |
DOIs | |
Publication status | Published - Jan 1 2015 |
Externally published | Yes |
Keywords
- Broker behavior
- Market structure
- Trade-based manipulation
ASJC Scopus subject areas
- Finance
- Economics, Econometrics and Finance(all)