Innsidepraksis

Innsidepraksis refers to the practice of using non-public, material information about a company to make investment decisions. This type of information is not yet available to the general public and can significantly influence the stock price of the company. Examples of inside information include upcoming earnings reports, merger or acquisition plans, new product launches, or significant management changes.

Trading on such information is illegal in most countries and is considered a form of securities fraud. Regulatory bodies like the Securities and Exchange Commission (SEC) in the United States actively monitor and prosecute individuals who engage in insider trading. The rationale behind these regulations is to ensure a fair and transparent market where all investors have access to the same information, promoting confidence and preventing unfair advantages.

While the term "innsidepraksis" often implies illegal activity, there is a distinction between illegal insider trading and legal insider transactions. Company executives, directors, and major shareholders are often required to report their transactions in company stock to regulatory authorities. These reported transactions, while based on privileged knowledge, are legal as they are disclosed to the public. However, the act of trading based on material, non-public information without disclosure remains illegal and carries severe penalties, including hefty fines and imprisonment.