§ 78A-12. Manipulation of market.

NORTH CAROLINA STATUTES AND CODES

§ 78A‑12. Manipulationof market.

(a) In addition to theprohibitions of G.S. 78A‑8, it is unlawful for any person to do any ofthe following:

(1) Willfully quote afictitious price with respect to a security.

(2) Effect a transactionin a security which involves no change in the beneficial ownership of thesecurity, for the purpose of creating a false or misleading appearance ofactive trading in a security, or a false or misleading appearance of activitywith respect to the market for the security.

(3) Enter an order forthe purchase of a security with the knowledge that, at substantially the sametime, an order of substantially the same size, and at substantially the sameprice, for the sale of the security has been, or will be, entered by or for thesame person, or an affiliated person, for the purpose of creating a false ormisleading appearance of active trading in a security, or a false or misleadingappearance of activity with respect to the market for the security.

(4) Enter an order forthe sale of a security with knowledge that, at substantially the same time, anorder of substantially the same size, and at substantially the same price, forthe purchase of the security has been, or will be, entered by or for the sameperson, or an affiliated person, for the purpose of creating a false ormisleading appearance of active trading in a security, or a false or misleadingappearance of activity with respect to the market for the security.

(5) Employ any otherdeceptive or fraudulent device, scheme, or artifice to manipulate the market ina security, including the issuance, with the intent to deceive or defraud, ofanalyses, reports, or financial statements that are false or misleading in anymaterial respect.

(b) A transactioneffected in compliance with the applicable provisions of the SecuritiesExchange Act of 1934 and the rules and regulations of the Securities andExchange Commission thereunder is not manipulation of the market undersubsection (a) of this section. (1991, c. 456, s. 1; 2003‑413, s. 1.)