Trade-Based Market Fraud (Manipulation) Crime in Turkish Law

Year 2025, Volume: 1 Issue: 1, 45 - 66, 19.06.2025

Buminhan Duman

Abstract

Capital markets play an important role for the national economy because companies can grow by making new investments with the funds they obtain from these markets. Due to this importance, it is also very important to maintain investors' confidence in the capital market. In order to preserve this confidence, manipulations that lead to artificial determination of stock prices should be prevented. In Turkish law, the crime of manipulation is regulated under the name of ‘Market Fraud’ in Article 107 of the Capital Markets Law No. 6362. This crime is regulated in the Law with a dual distinction as ‘trade-based market fraud’ and ‘information-based market fraud’. In our study, we will only examine the crime of trade-based market fraud. This crime may be committed by means of certain transactions that appear lawful in form but are intended to manipulate investors in order to artificially fix prices.

Keywords

Capital markets , investors’ confidence , manipulation , market fraud , stock prices.

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