Insider trading

In the ordinary usage insider trading is said to occur when a person buys or sells securities of a corporation on the basis of material inside information/ Usually the r information is "inside" in the sense that it concerns a new development in the corporation's business but is not yet widely known by the general investing public - in particular, the corporation's public security holders and those investors who are interested in buying its securities. The information is "material" or important in that, if it were publicly available, it would influence the market value of the corporation's securities or, at the least, would probably be considered an important factor by investors considering whether to buy or sell the corporation's securities. The person who buys or sells on the basis of material nonpublic information is usually someone who would be termed an "insider": a director, officer, or controlling shareholder of the company or a person who has received the inside information from them (a tippee). Insider trading may be based on undisclosed bad news as well as undisclosed news.

Grantor

Department of Commercial Law

Year dc:date.issued

1997

Author dc:creator

• Van Jaarsveld, Johannes Burger Jacobus

Advisor dc:contributor.advisor

• Blackman, M S

• Commercial Law

Handle dc:identifier.uri

http://hdl.handle.net/11427/40722

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/40722