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Market Manipulation, Bubbles, Corners, and Short Squeezes

Published online by Cambridge University Press:  06 April 2009

Robert A. Jarrow
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Abstract

This paper investigates market manipulation trading strategies by large traders in a securities market. A large trader is defined as any investor whose trades change prices. A market manipulation trading strategy is one that generates positive real wealth with no risk. Market manipulation trading strategies are shown to exist under reasonable hypotheses on the equilibrium price process. Sufficient conditions for their nonexistence are also provided.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 27 , Issue 3 , September 1992 , pp. 311 - 336
Copyright
Copyright © School of Business Administration, University of Washington 1992

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