In stock market terms, insider trading denotes the abuse of knowledge relating to confidential and price-relevant facts by a “tippee”, meaning an entity which receives a tip-off. In Switzerland, insider trading has been legally banned since 1988.
Price-relevant facts may include pending offers, purchases, sales, takeovers, profit fluctuations, profit warnings, mergers, restructuring or general financial information.
Tippees who are not insiders themselves are still theoretically guilty, if they receive tip-offs regarding price-relevant facts from insiders. In practice however, insider trades are often difficult to prove.
More on this topic:
Go to the free online broker comparison now
