Insider Trading

Purchasers like to make a profit by buying shares which they expect to increase in value. Such an increase may occur when a company secures a large and profitable order. The directors or senior managers of the company will know of such an order in advance of the general public. It would be in their interests to buy their company’s shares and sell when the price goes up as the public becomes aware of the company’s success. This is called insider trading and is illegal. It is a criminal offence for which some have received a prison sentence.