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08/18/2016
DANGEROUS whether foam inside the dwelling
08/18/2016

What is the stock market insider

What is the stock market insider

Inside - a way of illegal use of the closed overhead, having an important influence on the value of securities for the purpose of personal gain in the stock market.

In the US and in Europe with insider with these phenomenon are struggling with both severe economic crimes and punish the long term.


The term "insider" appeared in the US in the 30s andfirst wore no negative connotations. Insiders called people who own confidential information. However, over time this information became more and more frequent use with unseemly goals, or simply sell it. And this was the cause of the bankruptcy of many companies both in America and in Europe.

Insider information and insider

Insider information - is closed to the generalpublic information that could have a material impact on the stock market or the value of securities. This includes information about upcoming changes in the company, the change of management, the financial difficulties of the company, talks about the merger or purchase of large blocks of shares. This is particularly valuable information, access to which has a limited number of people. However, the ability to bring this information to the owner a lot of money, often pushing insiders take advantage of this opportunity or to sell information to interested parties.
Insider - a person with insiderinformation and uses it to buy or sell major assets in the stock market in order to enrich or market manipulation. As insiders often serve business executives and senior management, government officials, major shareholders and their proxies.

How to get insider information

One of the most common types of leakagevaluable information from the company - the negligence or carelessness of responsible employees. Many insiders deliberately give out the right information to competitors to "annoy" to his immediate supervisor. Or to buy competitors wishing to using insider win the competition. The case often comes to the introduction of direct employees to key positions in order to obtain confidential information. The latter, in fact, already considered to be industrial spies and the most dangerous criminals, often vulnerable to internal security services.
The fight against the illegal use of insiderinformation - business private security services. It increases the level of personal responsibility of each employee to preserve the trusted information, evaluates and prevents insider trading of valuable data. The fight against the illegal use of confidential information becomes a very high value. According to statistics, 20% of all leaks of company secrets in the right hands can lead to its complete bankruptcy.

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