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 ?
https://www.cnbc.com/2014/06/17/its-time-to-legalize-insider-tradingwall-streetcommentary.html; Doug Bandow, Free the Insider Traders: Stop
(65) See FERRARA ET AL., supra note 6, [sections] 2.01[5], at 2-14.6 (explaining that the Teicher court believed that "a `use' test would entail significant factual inquiries into the state of mind and the motivations of the insider trader").
Section I examines legal theories of insider trading liability that are used by the regulatory authorities to prosecute insider traders. Section II explores the notion of regulation by enforcement where the SEC develops new legal standards as the need arises instead of establishing systematic regulations of the prohibited conduct.
The fact that insider trading occurs primarily in an impersonal market is probably most significant in that it makes the ignorant trader's loss difficult to identify.(316) Because traders in the market do not know the identity of their opposite traders, the fact that any given trader has traded with an insider trader will be completely fortuitous.
Infamous insider trader Raj Rajaratnam may have been convicted of conspiracy and securities fraud in 2011, but as the case of his younger brother Rajarengan ("Rengan") Rajaratnam prepares to go to trial, prosecutors may face new difficulties in bringing harsh penalties against this alleged insider trader.
as protected from insider trader liability because the tipper received
"Wall Street: Money Never Sleeps", which features the return of Michael Douglas as disgraced insider trader Gordon Gekko, opens in the United States on April 23.
INSIDER TRADER, winner of five of his last six at Poole but still an open-race maiden, can put that right by taking the opening heat of the Golden Crest over 450m at the Dorset track tonight (8.37pm), writes Jonathan Kay.
Lynda Ramsden could hold the key to the TV opener as she saddles two fancies runners in SURPRISE MISSION (2.30) and Insider Trader.
Jem Racing (Golden Crest): 4 Blakes World, 9-2 Brave Prospect, Insider Trader, 6 Rhyzome Wizard, 7 Target Harry, 8 Blonde Joey, 9 Blonde Cindy, 10 Hi George, 12 Donal The Yank, 14 Westcountry Lady, 20 Caloona Mist, Gaytime Harry, 25 Civil War, 33 Blonde Buddy, Rosmon Ranger, Spoton Snowfire, 40 Rhyzome Merlin, Spoton Ballinora, 50 Catwalk Diva, Island Fog, 66 Micks Besthoncho, Swift Extort, 80 Hurling Honcho, 100 Nats Champion (e/w quarter 1,2,3,4).
The Securities and Exchange Commission has obtained an asset freeze against alleged insider traders who bought call options in Anadarko Petroleum (APC) before its $50B deal to be acquired by Chevron (CVX), the Financial Times' Kadhim Shubber reports, citing a court filing.
Matt Levine, Opinion, Insider Traders Made Some Easy Money on Stock Offerings, Bloomberg (June 3, 2015), https://www.bloomberg.com/view/ articles/2015-06-03/insider-traders-made-some-easy-money-on-stock-offerings [https://perma.cc/ G7EA-WWFG] ("[P[copie think [insider trading] is illegal because it's unfair, but it is actually illegal because it is theft....