insider trading
Discussion
i'm considering buying shares in listed company who is launching a new product which uses services provided by the company i work for. i don't know any dates but i know that after an announcement about the service the share price will jump so if i buy shares now and sell after the announcement will this be considered insider trading?
The FSA says:
Insider dealing is a criminal offence.
It is a process where individuals use, or encourage others to use, information regarding a company which is not generally available, to deal for their own financial advantage (other than in the proper performance of their job).
In other words, they have received information through inside knowledge or contacts and use it to make a profit.
It also has a lot to say about enforcement, i.e. getting a big stick out, here
The test has to be whether you are in a position to have information which is not generally avaiable and how you use it. Any sensible organisation will have bound you not to use sensitive information to your, or others, advantage if there is a danger of market abuse. (But keep it in perspective. If you're a receptionist for a bank it doesn't preclude you from buying or selling shares just because the company happens to bank with your employer....)
Insider dealing is a criminal offence.
It is a process where individuals use, or encourage others to use, information regarding a company which is not generally available, to deal for their own financial advantage (other than in the proper performance of their job).
In other words, they have received information through inside knowledge or contacts and use it to make a profit.
It also has a lot to say about enforcement, i.e. getting a big stick out, here
The test has to be whether you are in a position to have information which is not generally avaiable and how you use it. Any sensible organisation will have bound you not to use sensitive information to your, or others, advantage if there is a danger of market abuse. (But keep it in perspective. If you're a receptionist for a bank it doesn't preclude you from buying or selling shares just because the company happens to bank with your employer....)
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