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Insider information |
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Insider informationPrice-sensitive information about a company that has not yet been made public.People who use the information either to make a profit for themselves or for someone else are committing a criminal offence (insider dealing).The inside dealer does not have to work for the company for his dealing to be an offence. So a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. If he gets a friend to buy the shares, he is still guilty. In theory, the net is cast quite wide. In practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.Note the difference between insider dealing (an offence) and directors dealings (not an offence).Insider informationMaterial information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.Insider information Similar MatchesTechnical InformationTechnical InformationInformation related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only. Fundamental InformationFundamental InformationInformation relating to the economic state of a company or economy. In market analysis, fundamental information is related to the earnings prospects of the firm only. Information asymmetryInformation asymmetryCondition that information is known to some, but not all, participants. Limit order information systemLimit order information systemThe electronic system supplying information about securities traded on participating exchanges so that the best securities prices can be found. Asymmetric informationAsymmetric informationThe failure of two parties to a transaction to have the same relevant information. Examples are buyers who know less about product quality than sellers, and lenders who know less about likely default than borrowers. Both are common in international markets. Further SuggestionsIncomplete informationFor your information (FYI) Intermarket Surveillance Information System (ISIS) price sensitive information Asymmetric information Information services Nonpublic information Information content effect Complete information Information Coefficient (IC) Informational efficiency Informational efficiency Information costs Information Agent Information architecture Statement of Additional Information (SAI) London Market Information Link Information Ratio Expected value of perfect information |
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