Evaluation of the Malpractices of Intermediaries in the Secondary Securities Market
Keywords:
Intermediaries, malpractices, market, secondary, securitiesAbstract
A major issue encountered by investors as well as regulators in the securities market is the malpractices of intermediaries. Small investors invest their hard-earned money in securities in anticipation of better returns. Market malpractices not only disturb the orderly functioning of securities markets but also cause financial loss to investors. The volatile nature of the securities market coupled with the malpractices of the intermediaries creates uncertainty and drives away investors from the market. In this paper, the author discusses the malpractices of intermediaries in the secondary securities market in general and specific, as well as highlights the methodologies carried out by them to cheat innocent investors. The category of the market intermediaries may differ but their objective is the same to cheat the investors in the market.
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