Question

2. Briefly describe the nature and meaning of the following ethically questionable practices in financial journalism: market manipulation, insider trading, and nondisclosure of interests.

(For example, what is market manipulation and what does it mean when we say a financial journalist engages in market manipulation, or insider trading?)

Answer 1

Market manipulation refers to artificially inflating or deflating the price of a security or influencingthe behavior of the market for personal gain. Manipulation takes many forms in the markets. One way people can deflate the price of a security is by placing hundreds of small orders at a lower price than one at which it has been trading . There are so many forms of market manipulations, market rumours ,pump and dump, iinsider trading etc areforms of market manipulations.Market manipulation is illegal .The impact of market manipulation hurts short term traders and day traders

Insider trading is defined asa malpractice where in trade of a company's securities is undertaken by the people who buy virtue of their work have access the otherwise non public information which can be crucial for making investment decisions It give traders an unfair advantage over others and most forms of insider trading are illegal .Some investors follows insider trading because they believe insiders have a better insight to the financial health of the company . Market manipulation occurs when a person spreds false information about facts material to the audit or omit certain information subject to mandatory reporting requirements influencing the market price by deception .Insider trading occurs when securities are traded on the basis of confidential .

non-disclosure interest - The individuals may have access to certain confidential information not generally known to the public that shall not be disclosed to any third party or used for their own personal professional or financial benifit.