What is inside information?
Inside information refers to all information of a precise nature that has not been made public and that, if it were made public, could have a significant effect on the value of a security. The information can relate to a security, an issuer or securities markets in general.
Inside information can include, for instance, information on the following:
- forthcoming corporate restructurings
- orders to trade
- share issue
- purchase offer or redemption offer
- lowering of the nominal value of a company's share
- assimilation or division of share series
- contents of an interim report or financial statements
- profit warning of a company.
Information of a precise nature can refer to details concerning circumstances or events that have already occurred or happened or that can reasonably be expected to occur or happen. Exactness also requires that, on the basis of the information, it is possible to make an evaluation of the potential effect of the information on the value of the security.
The significance of the information refers in turn to information that a reasonable investor would be likely to use as one ground for his investment decisions.