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Hi Mike
This new topic is included in the bpp book (Global) for exams up to Aug 2017
in the chapter Fraudulent and criminal behaviour. Chapter 22I can’t seem to find any notes and lectures on this on your site.
Would you share some light on this topic.. explain what’s this about ?
The topic splits into two parts …
… insider dealing, and
… artificial / fraudulent manipulation of the market price of a quoted security
Insider dealing is fully covered in the notes
Market price manipulation is, very simply, giving out false information about a company (spreading market rumours) that has the effect of pushing up the demand for those shares resulting in a price rise
NB It doesn’t have to result in an increase in the market value. Market abuse works just as well when it results in a decrease in the market value of the quoted security
I don’t know how much of a chapter BPP have within their text but, given the nature of the F4 examination, it’s unlikely (1) that there will be a question on market abuse and (2) if there is such an unlikely occurrence, it is not going to be worth any more than 2 marks
OK?
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