Unethical, & illegal trading practices.Churning
What Does Churning Mean?
1.An unethical practice employed by some brokers to increase theircommissions by excessively trading in a client's account. This practiceviolates the NASD Fair Practice Rules. It is also referred to as "churnand burn", "twisting" and "overtrading".
2. A period of heavy trading with few sustained price trends and little movement in stock market indexes.
Investopedia explains ChurningAnother negative result for the client is being stuck with higher tax bills
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Circular Trading
What Does Circular Trading Mean?
Afraudulent trading scheme where sell orders are entered by a broker whoknows that offsetting buy orders, the same number of shares at the sametime and at the same price, either have been or will be entered.
Investopedia explains Circular TradingThese trades do not represent a real change in the beneficial ownership of the security.
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Ghosting
What Does Ghosting Mean?
Anillegal practice whereby two or more market makers collectively attemptto influence and change the price of a stock. Ghosting is used bycorrupt companies to affect stock prices so they can profit from theprice movement.
Investopedia explains Ghosting
Thispractice is illegal because market makers are required by law to act incompetition with each other. It is known as "ghosting" because, like aspectral image or a ghost, this collusion among market makers isdifficult to detect. In developed markets, the consequences of ghostingcan be severe.
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