innherjasölu

Innherjasölu is an Icelandic term that translates to "insider trading." It refers to the illegal practice of trading stocks or other securities of a publicly traded company based on material, non-public information about that company. This information is typically acquired by individuals who have a fiduciary duty to the company, such as executives, directors, or employees, or by individuals who receive such information from someone with such a duty.

The core principle behind the prohibition of insider trading is fairness. When individuals trade on non-public information, they gain an unfair advantage over other investors who do not have access to the same information. This can distort market prices and erode public confidence in the integrity of the stock market. The information must be material, meaning it is likely to affect the reasonable investor's decision to buy or sell the security, and non-public, meaning it has not been disseminated to the general investing public.

In Iceland, as in many other countries, insider trading is a criminal offense. The relevant laws are primarily found in the Securities Market Act. The Icelandic Financial Supervisory Authority (FME) is responsible for overseeing and enforcing these regulations. Penalties for insider trading can include significant fines and imprisonment. The detection and prosecution of insider trading cases are complex, often requiring sophisticated investigative techniques to establish the flow of information and prove the intent to profit from it.