Question

What is the difference between Rigging the market and Collusion?

What is the difference between Rigging the market and Collusion?

Homework Answers

Answer #1

In rigging the market the prices for any securities or stocks are manipulated by a person or company to make it more suitable for buyers or sellers. Here artificially stock prices are inflated by a series of bids to make those stocks highly demanding to the investors..

Whereas Collusion is a non-competitive, illegal mutual agreement between rivals to disrupt the market's equilibrium. Here the deal is between individual people or companies that naturally competes in the market, but now mutually agreed to work together to gain an unfair advantage of the market..

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