Insider dealing - The purchase or sale of securities by someone who possesses ‘inside’ information affecting securities which has not yet been made available to the market and which, if made available, would significantly affect the share price. In the UK such deals are a criminal offence.
Illegal share dealings by employees of a company where they have used confidential price-sensitive information for their own gain or the gain of their associates.The inside dealer does not have to work for the company for his dealing to be an offence. So a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. If he gets a friend to buy the shares, he is still guilty. In theory, the net is cast quite wide. In practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.Note the difference between insider dealing (an offence) and directors dealings (not an offence).
Insider dealing : the purchase or sale of securities by someone who possesses ‘inside’ information affecting securities which has not yet been made available to the market and which, if made available, would significantly affect the share price. in the uk such deals are a criminal offence.
illegal share dealings by employees of a company where they have used confidential price-sensitive information for their own gain or the gain of their associates.the inside dealer does not have to work for the company for his dealing to be an offence. so a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. if he gets a friend to buy the shares, he is still guilty. in theory, the net is cast quite wide. in practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.note the difference between insider dealing (an offence) and directors dealings (not an offence).
Insider dealing