Market Abuse

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

• 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):

1. Insider dealing

Where a person who has information not available to other investors (e.g. a Director with knowledge of a takeover bid) makes use of that information for personal gain.

1. 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;

In addition, Money laundering may be considered a form of market abuse.