A Review of Stock Market Manipulations & Their Detection

Abstract

The study represents a thorough review of the stock market's economic significance and the ongoing issue of manipulative practices. It draws attention to the need for precise regulatory guidelines and continuous developments in detecting technologies. It is highlighted that cooperation between regulators, financial institutions, and technology suppliers is essential for upholding market integrity and encouraging further study in this area. Conducting systematic research, data from Dimensions AI was acquired and organized for articles published between 2019 and 2021. After a thorough data cleaning and categorization process, visual aids like charts were utilized. This approach aimed to gain insights into the diverse methods employed for detecting stock market manipulation and enhancing market integrity. This study represents a diverse landscape of tactics utilized by participants in the financial market. It explores a wide range of strategies, from those aimed at influencing stock prices and trade volumes to collaborations among market players and the use of advanced tools like botnets for automated manipulation. Additionally, the study sheds light on modern detection approaches like machine learning, network analysis, and the strategic use of game theory. Furthermore, it emphasizes the vital role played by legal and regulatory frameworks in upholding market honesty and delves into practical risk management techniques. This narrative voyage contributes to the ongoing effort to strengthen financial markets against manipulation, fostering confidence among investors and stakeholders. In summary, these progressions in detection techniques offer a stronger and safer financial market, building confidence and trust among all involved. As researchers continue to push the limits of manipulation detection, the future holds the potential for even better market honesty and protection.