The Silent Manipulator: Insider Trading & Securities Market
- IJLLR Journal
- May 9
- 1 min read
Saptarshi Sengupta & Kanika Gupta, Amity University, Kolkata
ABSTRACT
Insider Trading is the buying and selling of a security of a company by individuals that own material, information that is non-accessible to the public with regards to the company’s inner workings. This includes stocks, or certain options by the corporate insiders and their associates based on the company’s firm.
"The securities laws use 'insider' in different ways," said Marc Fagel, a lecturer at Stanford Law School and former U.S. Securities and Exchange Commission (SEC) regional director. "There are statutory insiders (officers, directors, 10% shareholders) who have certain legal duties, but 'insider' for insider trading purposes is much broader."
Corporate Insiders are those who are employed with the firm (as executives, directors, or sometimes rank-and-file employees) or those who have privileged access to the company firm’s inner circle (such as large shareholders, consultants, accountants, lawyers, etc.) giving them access to valuable information.
Through this paper we will look into the very concept of insider trading and its foundations, illegal vs legal forms while focusing on ethical and economic consequences of information disunity, how insider trading compromises the standard of the playing field which can lead to undue advantages for the informed individuals and potential deformity in the markets.
Keywords: Insider trading, Corporate Firms, Securities, Valuable Information.
