Rigging the Market Law and Legal Definition

Rigging the market is a situation in which the prices for a security are manipulated so as to lure unsuspecting buyers or sellers. It is the practice of artificially inflating stock prices, by a series of bids, so that the demand for those stocks appears to be high and investors will be enticed into buying the stocks.

In securities law, the illegal practice of raising or lowering a security’s price by creating the appearance of active trading is prohibited by the Securities Exchange Act of 1934. [15 USCS § 78j].

Rigging the market is also called manipulation.