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 ?
9 (noting that insider traders in impersonal markets are no happier to have their trades publicized than are traders in face-to-face transactions); Berle, supra note 52, at 835 (rejecting the argument that there is no contact between an insider trader and her opposite in an impersonal market because the corporation's public disclosures create such contact).
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.
Jem Racing (Golden Crest): 4 Blakes World, Insider Trader, 5 Brave Prospect, 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 bar (e/w 1,2,3,4).
Charges against six people who cooperated in the prosecutions of alleged insider traders have also been dropped, Bharara said.
ASIC s systems, its people and investigatory powers allow us to catch insider traders and to achieve fairness in the marketplace.
Hackers can go to jail, liars can be fined, stalkers can be brought before a jury, insider traders can find themselves answering to a court.
The judge dismissed that proposal as "a kind of Peace Corps for insider traders.
A separate proposal will set out common standards for regulators when levying fines or initiating criminal procedures on market manipulators or insider traders.
On Wednesday, the long-debated issue resurfaced after prosecutors charged a secretary to a senior Disney executive and her boyfriend with trying to entice would-be insider traders by claiming they knew the company was in advanced discussions with private equity to sell ABC.
Even so, doubt may be raised about our understanding of insider trading, a doubt that should prompt concern about the justice of insider trading prosecution and about the harsh moral judgments people often make of insider traders.
Not only will the system point the finger at insider traders but ultimately it will flag up false rumours and exaggerated claims fed to the media to distort the market.
Under this system, fines frequently slip below real gains earned by insider traders as stock prices rise further later.