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 ?
(1) Directive 2003/6/EC of the European Parliament and Council of 28 January 2003 on insider dealing and market manipulation (market abuse)
The Belgian court asked the EU Court of Justice to provide an interpretation of Directive 2003/6/EC on insider dealing and market manipulation(1).
Insider dealing became a criminal offence - whereupon almost everyone got away with it.
The European Commission has published three working documents that seek to clarify how the new Directive on insider dealing and market manipulation (Directive 2003/6/EC) can be best implemented.
THE boss of one of Ireland's biggest property companies, Dunloe Ewart, went on trial yesterday charged with insider dealing.
The study, by academics from the London School of Economics and the Universities of Bristol and Exeter, showed that directors of publicly quoted companies often trade their own shares profitably without breaking insider dealing regulations.
EU Ministers have adopted a common position on the Commission's proposal for a Directive to curtail market manipulation and insider dealing (i.e.
A FULL-blown insider dealing investigation has been launched into Welsh frozen food giants Iceland.
The claim is being investigated by a French magistrate, who is also looking into accusations of insider dealing by financial institutions at the time of a 1994 share offering.
The initiative is one of the centrepieces of the Financial Services Action Plan, and the drive to create an integrated financial services market by 2005.--The Insider Dealing Directive (89/592/EEC) was adopted more than a decade ago.
It has led to allegations of Caribbean insider dealing from the Easter Road dressing room - Latapy received his vote from Turks and Caicos coach Charlie Cook - and a week of merciless ribbing to lighten a week of heavy training in the rain.
Champion, of Harborne Park Road, Harborne, Birmingham, pleaded guilty at Warwick Crown Court to 13 counts of insider dealing, mostly relating to companies in the Midlands.