What does the term 'distortion' refer to in the context of market abuse?

In the context of market abuse, the term 'distortion' refers specifically to the creation of misleading information that can affect the decisions of market participants. When information is distorted, it can lead to an inaccurate perception of a company's value or market conditions. This improper representation can have significant consequences, such as affecting stock prices, influencing investor behavior, or manipulating market operations.

Misleading information often arises from practices such as spreading false news, providing inaccurate financial statements, or using deceptive marketing tactics. The primary concern here is that such actions compromise the integrity and fairness of the market, leading investors to make decisions based on incorrect information rather than on a true understanding of a company or market situation.

Understanding this concept is crucial for maintaining the ethical standards of market operations and ensuring that all participating entities have access to truthful and accurate information, thereby promoting a healthy, competitive market environment.