Strategic measures to prevent opening and closing price manipulation in stock markets

ÖZCAN R.

IKTISAT ISLETME VE FINANS, sa.306, ss.53-67, 2011 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2011
  • Doi Numarası: 10.3848/iif.2011.306.3000
  • Dergi Adı: IKTISAT ISLETME VE FINANS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI)
  • Sayfa Sayıları: ss.53-67
  • İstanbul Üniversitesi Adresli: Hayır

Özet

Strategic measures to prevent opening and closing price manipulation in stock markets This study discusses opening and closing price manipulation in stock markets, which has been shown to prevail in many markets by the finance literature. The paper introduces strategic measures to prevent opening and closing price manipulations and the necessity for opening and closing call auctions without which the stock markets are exposed to manipulations. Modifying the auction mechanism and setting prices at a randomly chosen time seems to be an effective method in mitigating opening and closing price manipulation. Therefore, this paper recommends adopting opening and closing call auctions with random timing as a strategic measure to prevent opening and closing price manipulation.