Identifying the ways of manipulation of stock price in the world's leading exchanges

The stock exchange is a market, where partial capitals are accumulated to company’s financial outfit and it seems so necessary in every advanced economy. Any unusual action that aims to influence the natural process of pricing of securities, normal market mechanisms and decision making investors be called price manipulation. Price manipulation causes misleading appearance of the securities market and as a result, loosing public confidence in the market, reduces the investments in them and misallocation of resources to other markets. People such as major shareholders, agents, publishers and managers of joint stock companies, with regard to their position and location are more capable to manipulate the prices. Price manipulation can be classified into three types: manipulation based on information, manipulation based on the act and manipulation based on deals. Due to the harmful effects of price manipulation, all legal systems in the world prohibited stock price manipulation and trying to deal with it. The results show intelligent monitoring system used by the supervisory bodies in detecting price manipulation is more important than the rules of stock exchanges. Supervisory bodies in the stock market are responsible for observing and whenever they saw suspicious transactions, will act according to the law. Because of the high number of transactions per hour of intelligent software is used to monitor them. Updated and high-speed software helps to discover quickly manipulation of prices.