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:
“Writing ought either to be the manufacture of stories for which there is a market demand—a business as safe and commendable as making soap or breakfast foods—or it should be an art, which is always a search for something for which there is no market demand, something new and untried, where the values are intrinsic and have nothing to do with standardized values.”
—Willa Cather (1876–1947)
“Incest and child abuse are not yet being presented as recreational.”
—Mason Cooley (b. 1927)