|
|
Insider information |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesInformational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. Informational efficiencyInformational efficiencyThe speed and accuracy with which prices reflect new information. Information Coefficient (IC)Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship. Information content effectInformation content effectThe rise in the stock price following a dividend signal, or publication of some other related news. For your information (FYI)For your information (FYI)A prefix to a security price indicating that the quote is for information purposes only, and not an offer to trade. Further SuggestionsTechnical InformationAsymmetric information Asymmetric information price sensitive information Expected value of perfect information Fundamental Information Information Ratio Nonpublic information Incomplete information Information costs Information Agent Limit order information system Information services Statement of Additional Information (SAI) Information asymmetry Information architecture Complete information London Market Information Link Intermarket Surveillance Information System (ISIS) |
|
|
|