What behavior is viewed as market abuse?

Insider dealing is regarded as a form of market abuse because it involves trading in securities based on material, non-public information. This behavior undermines the fairness and transparency of financial markets. When an individual uses privileged information that is not available to the general public to make trading decisions, it creates an uneven playing field. This not only distorts the market but also erodes investor confidence in the integrity of the trading environment.

In contrast, providing accurate financial reports, offering fair competition, and proposing mergers all align with regulatory standards and ethical business practices. These actions support market integrity and act in the best interest of shareholders and the market at large, safeguarding against the manipulative behaviors associated with insider trading. The distinction is crucial as market abuse specifically refers to actions that compromise market integrity, which insider dealing clearly does.