§ 7-11-502 - Market manipulation. - Rhode Island Statutes

SECTION 7-11-502

   § 7-11-502  Market manipulation. – (a) Without limiting the general applicability of § 7-11-501, a person maynot directly or indirectly:

   (1) Quote a fictitious price with respect to a security;

   (2) Effect a transaction in a security which involved nochange in the beneficial ownership of the security for the purpose of creatinga false or misleading appearance of active trading in a security or withrespect to the market for the security;

   (3) Enter an order for the purpose of a security with theknowledge that an order of substantially the same size and at substantially thesame time and price for the sale of the security has been, or will be, enteredby or for the same, or affiliated, person for the purpose of creating a falseor misleading appearance of active trading in a security or with respect to themarket for the security;

   (4) Enter an order for the sale of a security with knowledgethat an order of substantially the same size and at substantially the same timeand price for the purchase of the security has been, or will be, entered by orfor the same, or affiliated, person for the purpose of creating a false ormisleading appearance of active trading in a security or with respect to themarket for the security; or

   (5) Employ any other deceptive or fraudulent device, scheme,or artifice to manipulate the market in a security.

   (b) Transactions effected in compliance with the applicableprovisions of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq.and the rules and regulations of the securities and exchange commission underthat Act do not constitute market manipulation under subsection (a).