What are the Negative Impacts of Stock Wash Trading?

[Suba]

Wash trading refers to the practice of manipulating the stock market by buying and selling a stock with the aim of increasing the volume that does not actually occur because the buying and selling of the stock is done by himself with two different accounts or with his own team. So in wash trading there is no change in stock ownership. The increased sales volume will allow the price of a stock to also increase. So in your opinion, what are the negative impacts of stock wash trading?

 

[magnus2022]

I think in some countries, it is a crime to influence stock market price using false means. But in this case, the impact may be enormous if such act is ever discovered. It will make the stock look like scam and all th owners as a kind of unworthy business owners. In fact, ones trader start to see a stock and parent company as bunch of scrupulous investors, the stock will crash and will not recover.