👉 A merger weapon is a type of financial instrument used in market manipulation, specifically designed to artificially inflate or deflate the price of a security by creating an artificial demand or supply imbalance. It involves two or more parties coordinating to merge their holdings of a security, often through off-market transactions, to create a false impression of strong buying or selling pressure. This manipulation can lead to significant price volatility, misleading investors, and potentially destabilizing the market. The term "weapon" highlights its deceptive nature, as it exploits the inherent inefficiencies and trust in market mechanisms to achieve predetermined outcomes.
