Can Market Markers Collude to fix prices?


I am just learning about what market makers are and how they facilitate markets in sock exchanges.

I was wondering if it is possible for couple of market markers to collude to fix the price of a stock?

Based on my understanding of the role their play, it seems like this is something market markers can do.

Is this the case? What prevents them colluding in practice?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *