Discuss (b) Wash trade

Securities fraud = the deception on the market — the falsehood-or-concealment that corrupts the investment decision or the price's integrity. The forms' gallery (the exam's classified list):1. The issuer-fraud: the false prospectus-and-accounts (the cooked books; the inflated revenues; the hidden liabilities — the Enron tradition, by name for the case study), the fake disclosures.2. The transaction-fraud: the broker's churning (the commissions' overtrading of the client's account), the unauthorised trading, the misappropriation of the clients' securities-and-money (the broker-scandals' Nepali history), the front-running (the broker's own trade ahead of the client's order).3. The scheme-fraud: the Ponzi structure (the fictitious returns paid from the new investors' principal — the Madoff name; Nepal's own Unity Life saga, Unit 9's case), the pyramid selling's network-variant, the boiler-room-and-pump-and-dump pairing (the false promotion + the insiders' exit sale).4. The professional-fraud: the auditor's-and-rating's corruption (the certificates sold), the advisor's conflicts concealed.