Insider information

 

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Insider information

Price-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 information

Material 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 Matches

Informational efficiency

Informational efficiency

The speed and accuracy with which prices reflect new information.


Information costs

Information costs

Transactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs.


Information Agent

Information Agent

Agent whose primary task is to disseminate and explain the details of capital transactions.


Nonpublic information

Nonpublic information

Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading.


Statement of Additional Information (SAI)

Statement of Additional Information (SAI)

A document provided as a supplement to a mutual fund prospectus. It provides more detailed information about fund policies, operations, and risks. Also known as a Part B prospectus.


Further Suggestions

Information asymmetry
Asymmetric information
Intermarket Surveillance Information System (ISIS)
London Market Information Link
For your information (FYI)
Information architecture
price sensitive information
Fundamental Information
Technical Information
Informational efficiency
Information services
Information Ratio
Information content effect
Information Coefficient (IC)
Limit order information system
Complete information
Expected value of perfect information
Incomplete information
Asymmetric information


 
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