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Market Abuse

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Market Abuse

  • This topic has 2 replies, 2 voices, and was last updated 13 years ago by MikeLittle.
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  • May 19, 2012 at 10:43 am #52730
    rhriju
    Member
    • Topics: 4
    • Replies: 2
    • ☆

    What is Market Abuse?

    May 20, 2012 at 12:09 pm #97724
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23310
    • ☆☆☆☆☆

    What’s the context? It could very well be the purchase of shares in a company after a severe fall whilst knowing ( firmly believing ) that the shares will recover.

    If that fits into your context, fine. If not, give me the context

    May 20, 2012 at 12:12 pm #97725
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23310
    • ☆☆☆☆☆

    This is an extract from the wikipedia definition of “market abuse”

    Market abuse may arise in circumstances where financial investors have been unreasonably disadvantaged, directly or indirectly, by others who:[1]

    * 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 (eg 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

    There is more! Why not look it up?

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