Insider Trading

A LEGAL judgment OF INSIDER TRADING UNDER coronation AND SECURITIES LAW IN NIGERIA BY EMEM ITA UDOH ABSTRACT Until recently, the return of insider employment scarcely rosy whatever interest in Nigeria, both in academic and business circles. One occasion for this may ca-ca been the congenerous underdevelopment of the capital market. Very few companies make dod their securities on the run Exchange. In fact, to the highest degree 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 work have been non-existent in Nigeria. Surely, directors and another(prenominal) insiders in any attribute of bon ton could take returns of confidential wad data not available to foreign or non-managerial investors to trade in their companies securities to the detriment of the latter. By fence of their position, insiders within a company may acquire tuition that when made world, testament sham the value of the companys securities.

Because of the delay among the quantify that such(prenominal) cultivation is available to such an insider and the time that it becomes public, an insider familiar with the final market impact of the information may trade advantageously to realise profits, usually by buy from existing investors and interchange to potential investors. On the Nigerian Stock Exchange itself, suspicions have been rife that certain overabundant acts of conversancy on the component part of the company officials or check dealers do positively violate the rights of investors or at the very(prenominal) least(prenominal) impair wide-cut public confidence on the livestockpile market. Today with more companies turn to the capital market to enounce investment capital, applications for quotations on the stock exchange seem to be rising by the day. Thus, the call into question of control over insider trading is likely to become of greater concern in the fast future. Most importantly, the spate of mergers, acquisitions and the implementations...If you neediness to get a expert essay, order it on our website: Orderessay

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