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

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 ?
Like many a subsequent insider dealer, however, Cantillon's success proved to be his undoing.
Pickpockets and insider dealers, kidnappers and war criminals, murderers and genocidists, drunk drivers and human rights violators, terrorists and armies of occupation, fraudsters and military coup plotters, environmental polluters and pornographers, drug dealers and hate criminals are all united in the spiral of imperialism.
Rogue insider dealers are believed to be behind the cheekiest Rugby League interception of all time.
What they are not - the Financial Services Authority points out sternly - is a wheeze for insider dealers to profit illegally from their knowledge without actually buying or selling shares, nor for company directors to get round the rule banning boardroom share dealings during a 'close period' before their company's results.