Abstract
The shortcomings of the Common law to effectively manage the challenges of insider trading will be discussed in this paper as a basis for statutory intervention in the development of insider trading regulations. Keywords: Company, insider, insider trading, information, legislation, disclosure and fiduciary duty. DOI : 10.7176/JLPG/83-07 Publication date :March 31 st 2019
Highlights
Insider trading[1] may be defined as the act of trading in company securities by persons often referred to as insiders who by virtue of their relationship with the company, possess some information, not available to the public, but material to the securities concerned
Www.iiste.org them.’[1]. Thirdly, it has been established that a director who makes use of confidential price sensitive information affecting the securities of a company for his own advantage is in breach of fiduciary duties and liable to account for any profits made.[2]
International Organization of Securities Commission (IOSCO) highlighted the objectives of good securities market to include: (a) Investor protection;[6] (b) Ensuring fair, transparent and effective market; and (c) Reduction of systemic risks. The provisions of these legislations are seemingly the same, with an ultimate aim to completely eradicate the practice of insider trading
Summary
Insider trading[1] may be defined as the act of trading in company securities by persons often referred to as insiders who by virtue of their relationship with the company, possess some information, not available to the public, but material to the securities concerned.
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