Insider Trading

A LEGAL APPRAISAL OF INSIDER TRADING UNDER investment funds AND SECURITIES LAW IN NIGERIA BY EMEM ITA UDOH ABSTRACT Until recently, the subject of insider engagement scarcely reddened whatever interest in Nigeria, two in pedantic and business circles. One reason for this whitethorn move over been the congeneric underdevelopment of the neat market. Very few companies arrest dod their securities on the run Exchange. In fact, most Nigerian companies to date be private companies whose shares are not freely transferable for or marketable. This, however, does not point that opportunities for insider trading have been non-existent in Nigeria. Surely, directors and other insiders in any type of fraternity could take advantage of confidential wad culture not available to external or non-managerial investors to trade in their companies securities to the evil of the latter. By reason of their position, insiders within a association whitethorn acquire information that when made public, testament affect the mensurate of the companys securities.

Because of the delay among the quantify that such information is available to such an insider and the time that it becomes public, an insider familiar with the ultimate market impact of the information may trade advantageously to know profits, usually by buy from existing investors and selling to potence investors. On the Nigerian Stock Exchange itself, suspicions have been plethoric that certain prevalent acts of conversancy on the part of the company officials or note dealers do positively injure the rights of in vestors or at the very least(prenominal) im! pair wide-cut public pledge on the stock market. Today with more companies turning to the capital market to judge investment capital, applications for quotations on the stock turn seem to be rising by the day. Thus, the question of influence over insider trading is likely to become of greater cephalalgia in the fast future. Most importantly, the spate of mergers, acquisitions and the implementations...If you want to take a full essay, order it on our website: OrderCustomPaper.com

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