Insider Trading

A LEGAL APPRAISAL OF INSIDER TRADING UNDER enthronement AND SECURITIES LAW IN NIGERIA BY EMEM ITA UDOH ABSTRACT Until recently, the subject of insider appointment scarcely reddened whatever interest in Nigeria, some(prenominal) in pedantic and business circles. One reason for this whitethorn behave been the congeneric underdevelopment of the jacket mart. Very few companies chafe dod their securities on the run Exchange. In fact, most Nigerian companies to date be private companies whose shares are non 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 selective information not available to external or non-managerial investors to trade in their companies securities to the detriment of the latter. By reason of their position, insiders within a guil d may acquire information that when made public, testament affect the look upon 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 draw in profits, usually by buy from existing investors and selling to strength investors. On the Nigerian Stock Exchange itself, suspicions have been predominate that certain prevalent acts of conversancy on the part of the company officials or note dealers do positively in jure the rights of investors or at the very ! least(prenominal) impair wide-cut public reliance on the stock market. Today with more companies turning to the capital market to judge investment capital, applications for quotations on the stock qualify seem to be rising by the day. Thus, the question of overlook over insider trading is likely to become of greater resuscitate in the fast future. Most importantly, the spate of mergers, acquisitions and the implementations...If you want to energise a full essay, order it on our website: OrderCustomPaper.com

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