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):
- 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.
- 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.
Famous quotes containing the words market and/or abuse:
“To market ‘tis our destiny to go.”
—Robert Frost (1874–1963)
“Children are extraordinarily precious members of society; they are exquisitely alert, sensitive, and conscious of their surroundings; and they are extraordinarily vulnerable to maltreatment or emotional abuse by adults who refuse to give them the profound respect and affection to which they are unconditionally entitled.”
—Wisdom of the Elders, quoted in Kids Are Worth It, by Barbara Coloroso, ch. 1 (1994)