eli5 How do people get in trouble with manipulating the market when every single person who buys or sells a stock manipulates the market to an extent. Is it only people who make enough doing so who get in trouble? What’s the difference between
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Market changes due to regular buying & selling aren’t manipulation in the sense you’re talking about. Yes, every trade *impacts* the market but that’s not manipulation…the price change is a normal result of what you did but not why you did it.
Manipulation is when you do something to explicitely to change the price so that you can profit off that price change. For example, hypothetically, tweeing that you’re going to buy some company for a bunch of $ (driving up it’s stock, which you already own some of) without any intention of actually buying it, selling your stock (now at a profit), then renegging on the promise to buy.
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