Explain the concept of market manipulation.

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Explain the concept of market manipulation.

Market manipulation refers to the deliberate and unethical actions taken by individuals or entities to artificially influence the price or value of a financial instrument or market. It involves activities such as spreading false information, creating artificial demand or supply, engaging in insider trading, or conducting fraudulent trades to deceive other market participants. The aim of market manipulation is typically to generate profits for the manipulator at the expense of other investors or to create a false perception of market conditions. It is considered illegal in most jurisdictions and is closely monitored and regulated by financial authorities to maintain fair and transparent markets.