The Insider - Insider information
Can Marcus tell his daughter that it is OK to buy shares of the company he works for with her own money?
Yes
No
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What should Marcus do about overhearing his colleague sharing insider information?
Report the matter to his manager immediately.
Investigate further. He should be absolutely sure about all the circumstances.
Raise the whole question with his colleague and explain to him that the standards set forth in the UN Convention against Corruption, the company’s internal policy and listing requirements are against insider trading.
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Which article of the UN Convention against Corruption should Marcus look up to see if this is OK?
Preventive anti-corruption policies and practices (Article 5).
Private sector (Article 12).
Bribery in the private sector (Article 21).
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Module completed - Summary
Insider information is defined as information capable of affecting the price of securities, which is not publicly available or generally known to the market.
No individual may use insider information directly or indirectly to subscribe for or trade in securities.
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