Title: Stock market efficiency, insider dealing and market abuse: the UK experience

Authors: Paul Barnes

Addresses: Nottingham Business School, Nottingham Trent University, Burton Street, Nottingham, NG1 4BU, UK

Abstract: It is only recently that market abuse, of which insider dealing is a form, has been unlawful in the UK. The general impression is that insider dealing is common, that the Financial Services Authority (FSA), the main regulator, is aware of this but is unable, except in the most obvious of cases, to prosecute at the criminal level. The picture is less clear for other forms of market abuse and the evidence as to their frequency of occurrence is conflicting. As a result we are unable to assess the extent to which these go unchecked.

Keywords: insider dealing; insider trading; market abuse; efficient capital markets hypothesis; share prices; pump and dump; trash and cash; stock market efficiency; Stock Exchange; Financial Services Authority; FSA; financial regulation; UK; United Kingdom; business governance; business ethics; economic crime prevention.

DOI: 10.1504/IJBGE.2010.029554

International Journal of Business Governance and Ethics, 2010 Vol.5 No.1/2, pp.38 - 50

Published online: 30 Nov 2009 *

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