'Insider trading regulation': to be or not to be?

dc.contributor.advisorJooste, Richard
dc.contributor.authorAdetoun, Adedurotiivii Omowunmi
dc.date.accessioned2026-02-16T10:29:45Z
dc.date.available2026-02-16T10:29:45Z
dc.date.issued2010
dc.date.updated2026-02-16T10:26:44Z
dc.description.abstractInsider trading may be defined as the act of trading in company securities by persons often referred to as insiders who by virtue of their relationship to the company, possess some information, not available to the public, but material to the securities concerned. For instance, insider trading occurs where a director knows that a company is in a bad financial state and sells his shares in it knowing that in a few days, a cut in the dividend payment will be made public. Likewise, the director will be an insider trader if on being informed before it was generally made public that the company has discovered oil on its own land, he buys more shares in the company with the hope of an increase in their market value as soon as the information is made public. There are two schools of thought with strong and divergent views on the effect of insider trading generally and particularly as it affects the stock market and the investing public. The proponents of the first school of thought encourage trading on insider information for its many advantages. According to them, the stock market generally feeds and grows on free flow of information. Disallowing insider trading would mean hampering the flow of trade. Furthermore, they have argued that insider trading is fundamental to capitalism because it pushes prices in the right direction, increases the number of transactions and provides the only real recompense for entrepreneurs. In addition, they are of the opinion that long-term investors stand a chance to benefit immensely from the act.
dc.identifier.apacitationAdetoun, A. O. (2010). <i>'Insider trading regulation': to be or not to be?</i>. (). University of Cape Town ,Faculty of Law ,School For Advanced Legal Studies. Retrieved from http://hdl.handle.net/11427/42846en_ZA
dc.identifier.chicagocitationAdetoun, Adedurotiivii Omowunmi. <i>"'Insider trading regulation': to be or not to be?."</i> ., University of Cape Town ,Faculty of Law ,School For Advanced Legal Studies, 2010. http://hdl.handle.net/11427/42846en_ZA
dc.identifier.citationAdetoun, A.O. 2010. 'Insider trading regulation': to be or not to be?. . University of Cape Town ,Faculty of Law ,School For Advanced Legal Studies. http://hdl.handle.net/11427/42846en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Adetoun, Adedurotiivii Omowunmi AB - Insider trading may be defined as the act of trading in company securities by persons often referred to as insiders who by virtue of their relationship to the company, possess some information, not available to the public, but material to the securities concerned. For instance, insider trading occurs where a director knows that a company is in a bad financial state and sells his shares in it knowing that in a few days, a cut in the dividend payment will be made public. Likewise, the director will be an insider trader if on being informed before it was generally made public that the company has discovered oil on its own land, he buys more shares in the company with the hope of an increase in their market value as soon as the information is made public. There are two schools of thought with strong and divergent views on the effect of insider trading generally and particularly as it affects the stock market and the investing public. The proponents of the first school of thought encourage trading on insider information for its many advantages. According to them, the stock market generally feeds and grows on free flow of information. Disallowing insider trading would mean hampering the flow of trade. Furthermore, they have argued that insider trading is fundamental to capitalism because it pushes prices in the right direction, increases the number of transactions and provides the only real recompense for entrepreneurs. In addition, they are of the opinion that long-term investors stand a chance to benefit immensely from the act. DA - 2010 DB - OpenUCT DP - University of Cape Town KW - trading regulations LK - https://open.uct.ac.za PB - University of Cape Town PY - 2010 T1 - 'Insider trading regulation': to be or not to be? TI - 'Insider trading regulation': to be or not to be? UR - http://hdl.handle.net/11427/42846 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42846
dc.identifier.vancouvercitationAdetoun AO. 'Insider trading regulation': to be or not to be?. []. University of Cape Town ,Faculty of Law ,School For Advanced Legal Studies, 2010 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42846en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentSchool For Advanced Legal Studies
dc.publisher.facultyFaculty of Law
dc.publisher.institutionUniversity of Cape Town
dc.subjecttrading regulations
dc.title'Insider trading regulation': to be or not to be?
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelLLM
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