Inside is a method of illegally using closed official information, which has an important influence on the value of securities for personal enrichment in the stock market.
In the US and Europe, with the insider with this phenomenon, they are struggling both with severe economic crimes and being punished with long terms.
The term "insider" originated in the United States in the 1930s andAt first did not wear a negative shade. Insiders were people who own confidential information. However, over time, this information has become more and more often used with unseemly goals, or even just trade it. And this caused the bankruptcy of many companies both in America and in Europe.
Insider and Insider Information
Insider information is closed to the general public.Public information that is able to have a significant impact on the stock market or on the value of securities. It includes information on the upcoming changes at the enterprise, on the change of management, on the financial difficulties of the enterprise, on the negotiations for the merger or purchase of large blocks of shares. This is especially valuable information, access to which has a limited number of people. However, the ability of this information to bring its owner a lot of money, often pushing insiders to take advantage of this opportunity or sell information to stakeholders.
An insider is a person who has an insiderInformation and uses it to buy or sell large assets in the stock market for the purpose of enriching or manipulating the market. As managers insiders often act as business executives and top management, government officials, major shareholders and their proxies.
How to obtain insider information
One of the most common types of leakageValuable information from the company - negligence or frivolity of responsible employees. Many insiders intentionally give competitors the information they need to "annoy" their direct leadership. Or they are bought by competitors who want to win in competition with the help of insider. The case often goes to the direct introduction of employees to key positions in order to obtain confidential information. The latter, in fact, are already considered industrial spies and the most dangerous criminals, often not vulnerable to internal security services.
The fight against the illegal use of insider tradingInformation - the matter of its own security service. It increases the level of personal responsibility of each employee for the preservation of trusted information, calculates and stops insiders trading in valuable data. The fight against the illegal use of confidential information becomes very important. According to statistics, the leak of only 20% of the company's secrets in the right hands can lead to its complete bankruptcy.