I. INTRODUCTION Insider trading describes any transactions in securities such as stocks and shares by persons having access to privileged information not available to the general investing public, and who stand a financial gain from this knowledge. Strictly speaking, the term ‘insider’ refers to someone who owes a fiduciary duty to a corporation and its current and potential shareholders. This term, however, has occasionally been expanded to include a wide range of persons with informational …showed first 75 words of 6216 total…

…showed last 75 words of 6216 total…TRADING 2 2.2 PROPERTY RIGHTS IN ‘MATERIAL’ INFORMATION 3 2.3 INSIDER TRADING AS A COMPENSATION DEVICE 4 2.4 ARGUMENTS FOR INSIDER TRADING 5 2.4.1 INFORMATION EFFECTS 5 2.4.2 EFFICIENCY EFFECTS 5 2.5 ARGUMENTS AGAINST INSIDER TRADING 6 2.5.1 THE ‘UNFAIRNESS’ ARGUMENT 6 2.5.2 OTHER ARGUMENTS AGAINST INSIDER TRADING 6 2.6 THE REGULATORY FRAMEWORK 7 2.6.1 COMMON LAW RULES 7 2.6.2 SECTION 10(b) AND RULE 10b-5 7 2.6.3 SECTION 16 8 2.7 EFFICIENCY VS UNFAIRNESS 8 III. SELECTIVE DISCLOSURE TO SECURITY ANALYSTS 8 3.1 GENERAL ISSUES ON SELECTIVE DISCLOSURE 8 3.2 ARGUMENTS FOR SELECTIVE DISCLOSURE 9 3.3 ARGUMENTS AGAINST SELECTIVE DISCLOSURE 9 3.4 EFFICIENCY VS UNFAIRNESS 10 IV. CONCLUSIONS 10 REFERENCES & BIBLIOGRAPHY ------------------------------------------------------------------------ **Bibliography**