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Insider dealing

Trading, or recommending trades, on the basis of undisclosed information: an offence rather than an advantage.

How to read the number

The prohibition covers passing information on as well, so liability arises on both sides and not only for whoever traded.

When the metric lies

Knowing such information does not bar owning the security, but it restricts dealing: employees of issuers trade under an internal policy rather than at will.

Also known as: insider dealing

Related terms