Illicit trading practices in the Iraqi stock market (comparative study)

Abstract

     Increasing the volume of trading and the huge gains made by investors have led some of them to engage in illegal business to make profit at the expense of the interests of other dealers and the interests of the financial market and the national economy. One of the most well-known illicit trading practices is price manipulation and insider transactions, which undermine the integrity of the trading process and its violation of the principles of fairness and equal access to information. In this research, we discussed the concept of such practices and mechanisms by regulators in dealing with these practices and ways of preventing them. We found that the Iraqi legislature is less structured than comparative legislation in the drafting of legal rules that prohibit and penalize dealers or others in the practice of illegal acts that are detrimental to the interests of investors, the market and the public interest.