Financial Market Manipulation: How to identify the Mechanisms?
Keywords:
manipulation, agent-based models, efficiency, financial marketsAbstract
The financial market responds to a variety of regulations that are meant to ensure its proper functioning. However, there are always speculations and agents who are eager to violate the trust of the investors in order to have more personal benefits. The main purpose of the present study is to identify the forms of manipulation (through information, through actions or through transactions) that alter the transparency and the good functioning of the financial market and lead to a general inadequate behaviour among the investors. The agent-based financial markets simulation models that resulted for various indexes are the key factors in interpreting the mechanisms mentioned before. Depending on the number of agents on the market, their initial wealth and the period of the simulation, the evolution of the index price is interpreted in terms of market manipulation taken into consideration the fact that the financial market evolves to a state of equilibrium using its own mechanism.Downloads
Published
2014-01-01
How to Cite
Vlad, A. (2014). Financial Market Manipulation: How to identify the Mechanisms?. International Journal of Economic Practices and Theories, 4(1), 77-88. Retrieved from http://ijept.eu/index.php/ijept/article/view/Financial_Market_Manipulation_How_to_identify_the_Mechanisms
Issue
Section
Articles
License
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).