Informative Nature of Market Manipulation

Abstract

The article concerns the nature of market manipulation – the offence which undermines the integrity of markets and investors’ confidence in them. The author examines different ways of manipulating the market and comes to the conclusion that all types of manipulative conduct can be characterized by a single purpose, that is, the influence on market participants’ ideas about the value of a particular financial instrument or a commodity. Methods used by the offenders are also similar: all of them are connected with the use of information for the benefit of the off ender. The author proposes a new term – manipulation of market information – which includes both the market manipulation and the improper use of insider information and reflects the essence of these phenomena more precisely.

Keywords:

market manipulation, improper use of insider information, financial markets