InsiderTrading and Takeover

As in this case, people made use of insider information and misused that information to purchase shares. Every one used the personal information which they got from their employment sources and passed on to their friends, who then made used of the information to buy shares. It helped them to gain personal benefits and they are subject to damages. They broke the law and made misuse of their power and authority (Bettis, Lemmon, Coles, pp. 191-220).

Insider trading, the use of insider information for stock exchange transactions and is a term of the financial market, especially the stock market . Insider trading operates, who issued a security order or raises while exploiting insider information. According to § 14 Securities Trading Act (WpHG), it is prohibited:

•To purchase using insider information insider securities for their own or third party or for another person or to divest

•Another insider information communicated without authorization made available,

•Inside information to acquire or dispose of insider securities, or any other trick to it any other way.

These actions are in accordance with § 38 para 1 WpHG with each threat of imprisonment up to 5 years or fines.

Insider

Insider is someone who has a price-sensitive information about an insider security or its issuer before this information became public knowledge. Insiders within the meaning of the Securities Trading Act, are persons who

•are related to the capital of a company or a related to the company directly

•acquire knowledge for their work in the company (for example, board members , supervisory board members )

•Given their profession or their job skills (for example lawyers , notaries , accountants , tax consultants , management consultants).

•Insider information due to the preparation or perpetration of crime have become.

These so-called primary insiders who get intended price-sensitive information are not publicly known, and there is the ...