Stock Market Efficiency, Insider Dealing and Market AbuseThe recent turbulence in the stock market has brought into question the way, and prices at which, shares are traded, and how the market effectively values companies. It has also raised public concern as to the way by which dealers and investors take advantage of changes in market prices. A number of high profile criminal prosecutions of insider dealing and market abuse and the frequent claims of other instances, combined with the changes in regulations resulting in a more aggressive and proactive stance by the various regulators, have brought the issue under the spotlight. This book discusses what makes stock market efficiency so important for the economy, looks at the theory and issues that underpin market abuse and why an offence often dismissed as a victimless crime is punished so severely. It explores the impact of perception and other factors that distort the market and outlines the extent of abuse. Regulators, lawyers, company officials, investigators, professional advisers and of course investors, both professional and otherwise will find this a helpful guide to the underlying elements of fraud and market manipulation. |
Contents
Introduction | 1 |
How Shares are Traded and Valued | 17 |
The Efficient Capital Markets Hypothesis | 45 |
Bubbles Manias Panics and Crashes | 63 |
The Case of Mergers | 87 |
The Regulation of the Markets | 113 |
Other editions - View all
Common terms and phrases
abnormal returns amount to market analysis approved person assets attempt audit auditor bank Barnes behaviour bidder bought breach cash cent Chapter chartist City Code company's shares corporate costs creative accounting dealing and market decision directors disclosure dividends earnings announcement ECMH Economics effect ensure estimated evidence example expected Figure Financial Services financial statements firms forecast fraud FSA's funds future Group hypothesis increased individual inside information insider dealing interest investors involved issue issuer Journal of Business listed companies Listing Rules manipulation market abuse market makers market price Minsky occur offence offer P/E ratio period prediction profit pump and dump qualifying investments reason regulations relating result risk Scania securities share price share price movements shareholders short selling sold South Sea Company spread betting Stock Exchange stock market takeover targets transactions Type II errors UKLA Viglen whilst