insider dealing


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.

Insider Trading

A trade one makes because one has relevant information on a company that has not been released to the public. For example, a person may have access to a company's financial state prior to its official announcement, and then buy or sell that company's stock accordingly. Generally speaking, those who engage in insider trading are a company's board of directors, executives, major shareholders, and other investors who have access to non-public information. Insider trading is a serious crime when it is done without proper authorization.

insider dealing

or

insider trading

transactions in FINANCIAL SECURITIES by persons having access to privileged (secret and confidential) information not yet available to the general investing public, and who in consequence stand to profit from exploiting this knowledge. For example, an employee of a merchant bank engaged in working out the financial details of a prospective TAKEOVER BID by a client firm for another company, might himself or through intermediaries buy shares in the target company prior to the public announcement of the bid.

In the UK, the provisions relating to the criminal offence of insider dealing are now contained in Part V of the Criminal Justice Act 1993 which replaced the Company Securities (Insider Dealings) Act 1985. In addition, the directors and the company will be bound by the Stock Exchange Model Code. See STOCK MARKET.

References in periodicals archive ?
Insider dealing involves people profiting by buying or selling shares using 'inside' information about a company that is not generally available to the ordinary investing public.
The FSA has the power to investigate and prosecute insider dealing under the Financial Services and Markets Act 2000 and the Criminal Justice Act.
The move is a sharp shift for the FSA, which has long focused its "principlesbased" approach to regulation on working with firms to prevent market abuse and insider dealing, shunning a confrontational approach.
Sally Dewar, managing director of wholesale and institutional markets, said: "Market misconduct, particularly in the form of insider dealing and market manipulation is, put simply, cheating and reduces investor confidence in the UK markets.
In yesterday's report the FSA also published data on insider dealing before a wider selection of price-sensitive announcements and said only two per cent of significant statements by FTSE 350 firms, or large and mid-sized UK companies, in 2004-05 were preceded by informed price movements.
EADS continued to be haunted by the crisis yesterday as French police raided its offices and those of shareholder Lagardere in a probe into alleged insider dealing.
However, he has recently been cleared of any insider dealing.
He was recently cleared of allegations of insider dealing.
TYCOON George Soros went on trial yesterday for an alleged pounds 8million insider dealing scam.
THE boss of Wirral-based Cooltrader says he was kept under a cloud while being investigated for alleged insider dealing, but it did not affect his determination to grow his frozen food business.
As well as the possibility of insider dealing, the Serious Fraud Office looked into how the frozen food supermarket chain, now part of the Flintshire-based the Big Food Group, had drawn up profit figures.
Mr Walker, who founded the company three decades ago, said: ``I never had the slightest doubt that I would be totally vindicated by any inquiry into alleged insider dealing in Iceland shares in late 2000.