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 throw obstacles in the way of a complete education is like putting out the eyes; to deny the rights of property is like cutting off the hands. To refuse political equality is like robbing the ostracized of all self-respect, of credit in the market place, of recompense in the world of work, of a voice in choosing those who make and administer the law, a choice in the jury before whom they are tried, and in the judge who decides their punishment.”
—Elizabeth Cady Stanton (1815–1902)
“But I’ve heard mankind abuse thee;
And perhaps it’s rather strange,
But I thought that I would choose thee
For encomium, as a change.”
—Charles Stuart Calverley (1831–1884)