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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Market Abuse
What is Market Abuse?
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
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?
