Civil liability of Market Manipulation In the Stock Exchange

Market manipulation is one of the actions in the laws and regulations governing securities markets, the have criminal or disciplinary sanctions and in the case of the loss also creates civil liability. This paper is an attempt to analyze the three elements of civil liability in respect of liability arising from market manipulation and also the manner of evaluation of the damage has been investigated in this paper. In summary, we can say that any person by publishing untrue information, or transactions or other methods causes false prices for the securities, and thereby damage the traders’ benefits, will be liable to compensate the damages. The damage is equal to the difference between the current price of the stock and the stock price in assuming no fault.