2012 New Hampshire Revised Statutes
Title XXXVIII - SECURITIES
Chapter 421-B - SECURITIES
Section 421-B:5 - Unlawful Activities.

    421-B:5 Unlawful Activities. – It is unlawful for any person to effect any transaction in, or to induce the purchase or sale of any security by means of any manipulative, deceptive or otherwise fraudulent device or contrivance, including any fictitious quotation. The terms "manipulative, deceptive, or otherwise fraudulent device or contrivance'' shall include, but shall not be limited to, the following practices:
    I. Effecting any transaction in a security which involves no change in the beneficial ownership thereof, or entering any order or orders for the purchase or sale of any security with the knowledge that an order or orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale or purchase of the security, have been or will be entered by or for the same or affiliated persons, for the purpose of creating a false or misleading appearance of active trading in the security or a false or misleading appearance with respect to the market for the security.
    II. Effecting, alone or with one or more other persons, a series of transactions in any security creating actual or apparent active trading in the security or raising or depressing the price of the security, for the purpose of inducing the purchase or sale of the security by others.
    III. Inducing the purchase or sale of any security by the circulation or dissemination of information to the effect that the price of the security will or is likely to rise or fall because of market operations of any one or more persons conducted for the purpose of raising or depressing the price of the security, if he is selling or offering to sell, or purchasing or offering to purchase the security, or is receiving a consideration, directly or indirectly, from any such person.
    IV. Any act of any broker-dealer designed to effect with or for any customer's account, in respect to which such broker-dealer or his or her agent or employee is vested with any discretionary power, any transaction for the purchase or sale of a security unless:
       (a) Immediately after effecting such transaction such broker-dealer makes a record of such transaction, which record includes:
          (1) The name of such customer.
          (2) The name, amount, and price of the security.
          (3) The date and time when such transaction took place.
       (b) Such broker-dealer sends each month to each customer, in whose account such broker-dealer exercises any discretionary authority, an itemized statement showing the funds and securities in the custody or possession of the broker-dealer at the end of such period, and all debits, credits, and transactions in such client's account during such period.
    V. Using information in violation of Rule 10b-5 of the Securities Exchange Act of 1934 about an issuer, learned from the issuer's officers, directors, or key employees, which is not generally available to the public and which would significantly affect the market price of the issuer's securities for personal benefit, directly or indirectly, in the offer, sale, or purchase of the issuer's securities, as a basis for making a recommendation regarding a security.
    VI. Creating an atmosphere of false supply or demand in a market for publicly traded securities or engaging in market manipulations.
    VII. Creating unreasonable delays in delivering securities.
    VIII. Representing that securities will be listed on a national exchange or that application for listing will be made, without any basis in fact for such representation.
    IX. Selling or soliciting the purchase of one security from a market in publicly traded securities conditioned upon the customer's agreement to purchase another security.

Source. 1981, 214:1, eff. Jan. 1, 1982. 2006, 245:3, 4, eff. July 1, 2006.