Lesson plan
Pool operation
A pool operation is a form of market manipulation that artificially and temporarily changes the price of a security’s shares in order to secure the pool's participants with a profit. Pool operations may deploy overlapping, but not the same exact, tactics as other forms of market manipulation, such as boiler room operations. Pool operations contributed to the Wall Street crash of 1929 and were the subject of multiple congressional hearings and investigations, including the Pujo Committee and the Pecora Commission. The existence of pool operations led to securities-related legislative and regulatory changes that arose in the 1930s, including the Securities Exchange Act of 1934. Traditional and newer versions of pool operations continue to exist to this day in North America and Asia.
Article summary
A pool operation is a form of market manipulation that artificially and temporarily changes the price of a security’s shares in order to secure the pool's participants with a profit. Pool operations may deploy overlapping, but not the same exact, tactics as other forms of market manipulation, such as boiler room operations. Pool operations contributed to the Wall Street crash of 1929 and were the subject of multiple congressional hearings and investigations, including the Pujo Committee and the Pecora Commission. The existence of pool operations led to securities-related legislative and regulatory changes that arose in the 1930s, including the Securities Exchange Act of 1934. Traditional and newer versions of pool operations continue to exist to this day in North America and Asia.
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.