insider dealing

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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


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 offences punishable by fouryears' imprisonment include those in which inside information is used with intent to buy or sell financial instruments or to cancel or amend an order.
Previous to the FCA's establishment, the FSA secured 23 convictions in relation to insider dealing, including that of (http://www.
The organisation has previously secured 14 convictions for insider dealing and is prosecuting four other individuals.
And Malcolm Calvert, a former trader and partner of Cazenove bank, was recently charged with 12 counts of insider dealing over a two-year period following his retirement from the firm.
Insider dealing and money-laundering are not entirely natural bedfellows: insider dealing may or may not be a crime and may or may not give rise to a money-laundering offence, depending on the member state concerned, the amount of money involved and the use to which it is put.
It contains prohibitions for insider dealing and market manipulation, and provisions to prevent and detect these.
The most serious forms of market abuse, such as insider dealing, will be punishable by a maximum prison term of four years.
BUSINESSMAN Iraj Parvizi, the owner of this year's St James's Palace Stakes winner Most Improved, has been charged by the Financial Services Authority with insider dealing, writes Andrew Scutts.
Topics include corporate restructuring and raiding, insider dealing and market manipulation, deduction of interest paid on foreign loans, offshore corporate accounts, and harmonized regulation of investment services.
In October 2010 Christian Littlewood, his wife Angie and a family friend, Helmy Omar Sa'aid, pleaded guilty to eight counts of insider dealing in shares listed on the London Stock Exchange and the Alternative Investment Market (AIM) between 2000 and 2008.
He is a member of the supervisory board of the Hong Kong Housing Society and a member of the Hong Kong Insider Dealing Tribunal.