Market Misconduct

Market misconduct involves dishonest or unfair behavior that manipulates or distorts financial markets, undermining trust and fairness. Examples include insider trading (using confidential info for profit), false or misleading statements, market manipulation (like artificially inflating stock prices), and breaches of trading rules. Such actions can harm investors, distort market prices, and undermine confidence in the financial system. Authorities monitor and enforce laws to prevent market misconduct, promoting transparency and fairness to ensure markets function efficiently and ethically for all participants.