What behavior is classified as market abuse?

Market abuse encompasses behaviors that manipulate or distort the integrity of the financial markets. Insider dealing refers to the buying or selling of securities based on material, non-public information, which undermines the fairness of the market by giving an unfair advantage to those with insider knowledge. Misleading transaction information involves providing false or misleading information that can influence the price or demand for a security, which also breaches market integrity.

Both of these behaviors significantly harm investors and erode trust in the financial system. By falling under the definitions of manipulative or deceptive practices, they illustrate the broader concept of market abuse aimed at maintaining a fair and transparent trading environment. This understanding clarifies why the selection that includes both insider dealing and misleading transaction information accurately identifies market abuse.