Economics Financial Regulation Questions
Market abuse refers to any unfair or manipulative practices that distort the functioning of financial markets, undermine investor confidence, or harm the integrity of the financial system. It involves activities such as insider trading, market manipulation, and the dissemination of false or misleading information. Market abuse can occur in various forms, including the misuse of privileged information, the creation of artificial prices or volumes, or the spreading of rumors to manipulate market prices. Regulators and authorities have implemented strict regulations and surveillance mechanisms to detect and prevent market abuse, ensuring fair and transparent financial markets for all participants.