What types of securities are involved in insider dealing?

Prepare for the UK Regulation and Professional Integrity Test. Tackle diverse multiple-choice questions, enhanced with detailed explanations and resources. Excel in your exam!

Insider dealing primarily involves the buying or selling of shares and options related to shares based on material, non-public information about a company. This illegal activity occurs when an individual with access to confidential information about a firm engages in trading in the company's shares or in options to acquire those shares, often leading to profit or avoiding a loss based on privileged insights that the general public does not have.

In the context of UK regulation, the Market Abuse Regulation (MAR) specifically refers to shares and related securities regarding insider trading, making the acquisition of shares and associated options central to the definition of insider dealing. This understanding is fundamental for professionals in the financial sector, as it delineates ethical boundaries and regulatory frameworks to prevent market abuse and ensure a level playing field for all investors.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy