Standard II(B) Flashcards
1
Q
what is standard II(B)
A
integrity of capital markets - market manipulation
2
Q
explain standard II(B)
A
must not engage in practices that distort prices or artificially inflate trading volume w/ intent to mislead market participants
3
Q
impact of market manipulation
A
disrupts smooth functioning of financial markets
lowers investor confidence
lack of trust in market fairness
higher risk premiums
reduced investor participation
4
Q
information-based manipulation
A
spreading false rumours to induce tracing by others
5
Q
transaction based manipulation
A
knowingly affects pricing or volume of security
e.g. securing controlling, dominant position
6
Q
what is market manipulation
A
distort security prices or trading volume intended to deceive market participants
7
Q
A
