If a manager holds illiquid securities for his clients that aren’t priced frequently and buys some in the market just so that he can more accurately value their portfoliios (and the purchase doesn’t significantly affect the value of the portfolios), what ethics standards is he violating? I’ve seen in some places it’s considered market manipulation but to me it is more of a diligence and reasonable basis violation.
its manipulation of the stock market since you always BUY the stock. so lets say you always hit the ask at the end of the month on a illiquid stock ( the bid-ask price may be very large ) , the price will be artificialy inflated in your end-of-month report.
perfect, thanks!