Sisäpiiriläinen

Sisäpiiriläinen is a Finnish term that translates to "insider" or "insider trader" in English. It refers to an individual who possesses or has access to non-public, material information about a publicly traded company. This information is considered "inside" because it has not yet been disseminated to the general public and could, if known, significantly influence an investor's decision to buy or sell the company's stock.

The concept of a sisäpiiriläinen is closely tied to insider trading regulations. Laws in most jurisdictions prohibit individuals from trading securities based on such privileged information. This is to ensure a fair and equitable market for all investors. Typically, a sisäpiiriläinen includes company executives, board members, major shareholders, and sometimes even external parties like lawyers, accountants, or consultants who gain access to confidential information through their professional relationship with the company.

The act of trading on this inside information for personal profit is illegal and carries severe penalties, including fines and imprisonment. Regulatory bodies monitor trading activities for suspicious patterns that might indicate insider trading. The definition of what constitutes "material" information can be nuanced, but generally, it refers to any information that a reasonable investor would consider important in making an investment decision. Maintaining the confidentiality of such information is a crucial responsibility for those who have access to it.