Insider information - Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.
Price-sensitive information about a company that has not yet been made public.People who use the information either to make a profit for themselves or for someone else are committing a criminal offence (insider dealing).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 information : material information about a company that has not yet been made public. it is illegal for holders of this information to make trades based on it, however received.
price-sensitive information about a company that has not yet been made public.people who use the information either to make a profit for themselves or for someone else are committing a criminal offence (insider dealing).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 information