Market abuse

Share on Facebook Share on Twitter Email
Top

Market abuse may arise in circumstances where financial investors have been unreasonably disadvantaged, directly or indirectly, by others who:[1]

  • have used information which is not publicly available (insider dealing)
  • have distorted the price-setting mechanism of financial instruments
  • have disseminated false or misleading information.

Market Abuse is split into two different aspects (Under EU definitions): Insider Dealing: Where a person who has information not available to other investors (eg a Director with knowledge of a takeover bid) makes use of that information for personal gain. Market Manipulation: Where a person knowingly gives out false or misleading information (For instance about a company's financial circumstances) in order to influence the price of a share for personal gain; Money Laundering

See also

References

Further reading

  • Avgouleas EE The mechanics and regulation of market abuse: A legal and economic analysis (2005)

Post a question - any question - to the WikiAnswers community:

Copyrights: