# Ark. Code Ann. § 23-42-508: Market manipulation

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-508

## Section

- **Citation:** Ark. Code Ann. § 23-42-508
- **Heading:** Market manipulation
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 23 / Chapter 42 / Subchapter 5 / Section 23-42-508

## Text

It is unlawful for any person, directly or indirectly, in this state: (1) To effect any transaction in a security which involves no change in the beneficial ownership thereof, or to enter any orders for the purchase or sale of any security with the knowledge that orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale or purchase of the security, have been or will be entered by or for the same or affiliated persons, for the purpose of creating a false or misleading appearance of active trading in the security or a false or misleading appearance with respect to the market for the security; (2) To effect, alone or with one (1) or more other persons, a series of transactions in any security creating actual or apparent active trading in the security or raising or depressing the price of the security, for the purpose of inducing the purchase or sale of the security by others; or (3) To induce the purchase or sale of any security by the circulation or dissemination of information to the effect that the price of the security will, or is likely to, rise or fall because of market operations of any one (1) or more persons conducted for the purpose of raising or depressing the price of the security, if he or she is selling or offering to sell or purchasing or offering to purchase the security or is receiving a consideration, directly or indirectly, from that person. Acts 1971, No. 131, § 7; A.S.A. 1947, § 67-1263.

It is unlawful for any person, directly or indirectly, in this state:

(1) To effect any transaction in a security which involves no change in the beneficial ownership thereof, or to enter any orders for the purchase or sale of any security with the knowledge that orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale or purchase of the security, have been or will be entered by or for the same or affiliated persons, for the purpose of creating a false or misleading appearance of active trading in the security or a false or misleading appearance with respect to the market for the security;

(2) To effect, alone or with one (1) or more other persons, a series of transactions in any security creating actual or apparent active trading in the security or raising or depressing the price of the security, for the purpose of inducing the purchase or sale of the security by others; or

(3) To induce the purchase or sale of any security by the circulation or dissemination of information to the effect that the price of the security will, or is likely to, rise or fall because of market operations of any one (1) or more persons conducted for the purpose of raising or depressing the price of the security, if he or she is selling or offering to sell or purchasing or offering to purchase the security or is receiving a consideration, directly or indirectly, from that person.

Acts 1971, No. 131, § 7; A.S.A. 1947, § 67-1263.

## Nearby sections

- [Ark. Code Ann. § 23-42-501 Sale of unregistered nonexempt securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-501.md)
- [Ark. Code Ann. § 23-42-502 Filing of prospectus, sales literature, etc](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-502.md)
- [Ark. Code Ann. § 23-42-503 Exempted securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-503.md)
- [Ark. Code Ann. § 23-42-504 Exempted transactions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-504.md)
- [Ark. Code Ann. § 23-42-505 Denial or revocation of exemption](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-505.md)
- [Ark. Code Ann. § 23-42-506 Burden of proof of exemption](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-506.md)
- [Ark. Code Ann. § 23-42-507 Fraud or deceit in connection with offer, sale, or purchase of securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-507.md)
- [Ark. Code Ann. § 23-42-508 Market manipulation](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-508.md)
- [Ark. Code Ann. § 23-42-509 Covered securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-509.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-508. Check the current official text before relying on it. Not legal advice.