This is a very dumb question that I ask, but I think it's an important one. What kind of rules exist to prevent market manipulation? For example, suppose if the current stock price is 50 dollars per share, and the current bid-ask spread is 49-51. Lets say I go in and put in a bid of 1000 dollars for a share. If I find a seller, which I obviously will, would the stock price go up to 1000$ within that instant ?
If that's true, that means there must be constraints on how far away you can bid from the current market price. What are other such rules?