sisäpiiritkuten

Sisäpiiritkuten is a Finnish term that translates to "insider trading" in English. It refers to the practice of trading securities, such as stocks or bonds, on the basis of material, non-public information. This information, if it were publicly known, could significantly influence the price of the security.

The key elements of sisäpiiritkuten are the possession of information that is not generally available to the public and the trading of securities based on that information before it becomes public. This gives the insider an unfair advantage over other investors who do not have access to the same privileged information.

Sisäpiiritkuten is illegal in most countries, including Finland, because it undermines the fairness and integrity of financial markets. Regulatory bodies, such as the Finnish Financial Supervisory Authority (Finanssivalvonta), are responsible for detecting and prosecuting cases of insider trading. Penalties for engaging in sisäpiiritkuten can include substantial fines and imprisonment.

The concept is designed to protect ordinary investors and maintain confidence in the stock market. When insider trading is perceived to be rampant, it can discourage investment and lead to market instability. Therefore, laws against sisäpiiritkuten aim to create a level playing field for all participants in the financial markets.