Three fined total of HUF 11.5 mln for 'wash trades' on BUX
The National Bank of Hungary fined three investors a total of HUF 11.5 mln for "wash trades" on the Budapest Stock Exchange, the bank announced today.
Those who were penalized include an unnamed individal, fined for HUF 6 mln, Xp-Banktechnica, fined for HUF 5 mln and PT Land, fined HUF 500,000.
A wash trade is a form of stock manipulation in which the investor simultaneously buys and sells the same shares in order to artifically increase volume. Such trades are illegal because they can falesly give the impression that a stock is under high demand – and artificially generate higher commissions for brokers.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.