Journal Article

Do Terrorists Play the Market? Or Can Their Attacks Serve as a Source of Financing for Terrorism?

Thomas Baumert

in Policing: A Journal of Policy and Practice

Volume 2, issue 4, pages 434-440
Published in print January 2008 | ISSN: 1752-4512
Published online January 2008 | e-ISSN: 1752-4520 | DOI: http://dx.doi.org/10.1093/police/pan058
Do Terrorists Play the Market? Or Can Their Attacks Serve as a Source of Financing for Terrorism?

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Terrorism has evolved into a sort of economic war that tries to economically erode its opponent. Thus, economic and financial institutions have become a main objective of terrorism. Nevertheless, financial markets can be seen to be involved in an attack not just as a victim, but also as an instrument. The recurring question that arises when analysing the stock market reaction after large-scale attacks, is the possibility that terrorist groups exploit ‘insider information’ about these events not just to finance them, but to obtain large profits from them that might be used in maintaining the infrastructure of the organization in question. Our article explores this possibility and suggests the observation of financial markets as a source of information of upcoming attacks.

Journal Article.  4100 words. 

Subjects: Policing

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