INFLUENCE OF INFORMATION ASYMMETRY ON THE STOCK MARKET ON THE PRICE FORMATION PROCESS
Keywords:
stock market, information asymmetry, insider trading, price formation, capital market, information transparency, investor behavior, market efficiency.Abstract
This scientific article analyzes the economic essence of information asymmetry in the stock market, its impact on the formation of the price of securities, as well as theoretical and practical aspects related to insider trading (Domestic Trade). In the course of the study, it was studied how the uneven distribution of information affects the behavior of investors, market liquidity and the effective formation of prices. Also, the role of information transparency, quality of corporate governance and regulatory control in the stock markets of developed and developing countries has been analyzed. According to the results of the study, an increase in the level of information asymmetry increases uncertainty in the market, leading to a deviation of the price of assets from the real value. Based on this, proposals and recommendations have been developed to increase information transparency in the stock market and protect the interests of investors.
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