Analysis of Market Manipulation from the Perspective of Behavioral Finance

Abstract

Behavioral finance is a hot issue in the field of international finance in recent years. It draws on the research results of psychology, behavioral science and sociology, and systematically studies the investment decision-making behavior of investors under irrational assumptions and its impact on asset pricing. From the perspective of behavioral finance, this paper discusses how investors are influenced by information in the market manipulation phenomenon to make irrational decisions, and the market manipulation behavior artificially distorts the normal price of the securities market, making the price and value of the securities seriously deviate, resulting in false supply and demand, misleading the flow of funds, can not truly reflect the relationship between market supply and demand, and damage the interests of investors. Therefore, strengthening the supervision of stock price manipulation and formulating relevant regulatory measures are of great significance for controlling risks, enhancing market effectiveness, and making the securities market healthy and smooth.