Use of insider information in the exchange game

DOI: 10.33917/mic-4.93.2020.90-95

Information costs money, especially if its disclosure can greatly affect the financial condition of an economic entity. Possession of this information makes some people think about its protection and temporary preservation, while others – about how to get it. The carriers of this information, referred to as insiders, may themselves use the knowledge in their own favor, or in favor of third parties. Involvement of unskilled investors in trading often serves as a veil of mercenary intentions.

This article gives general approaches to understanding the significance of insider information during stock market games. Clarification of the nature and mechanisms of the misuse of insider information should help to penalize this phenomenon.

References:

1. Alyokhin B.I. Securities Market: Textbook. M.: UNITY-DANA, 2004.

2. Kabanovskaya Yu. I. Modern threats and security of the securities market // Scientific notes of the International banking Institute. 2019. № 2 (28). pp. 116-117.

3. Katasonov V.Yu. About interest: loan, court, reckless. «Monetary civilization» and the modern crisis. Moscow, 2014.

4. Koshkarev M.V. Economic security of large economic entities in the conditions of competitive struggle / Economic security of the individual, society, state: problems and ways to ensure: Materials of the annual all-Russian scientific and practical conference on April 5, 2019. – St. Petersburg, 2019.

5. Malyshenko K.A., Malyshenko V.A., Anashkina M.V. Problems of formation of the mechanism of identification of insider activity and manipulation on the stock market / Problems of interaction of public and private law in regulating economic relations: Materials of the II International scientific and practical conference / Rev. G.Z. Mansurov, A.V. Goloviznin. – Yekaterinburg, 2018 [Electronic resource]. – Mode of access: https://elibrary.ru/item.asp?id=36681856 (date accessed: 13.07.2020).

6. Rogozin V.Yu., Galushkin I.B. Research on the effectiveness of countering illegal actions of insiders as a threat to the economic security of the Russian Federation // Crime investigation: problems and solutions. 2016. # 4 (14). p. 67.

7. Savchuk I.A., Medvedeva G.T. Insider trading // Universum: Economics and jurisprudence: electron. scientific. journal 2016. № 9 (30). URL: http://7universum.com/economy/archive/item/3601 (date accessed: 10.07.2020).

8. Soros J. Alchemy of Finance. Moscow: INFRA-M, 2001.

9. Price manipulation and use of insider information in financial markets [Electronic resource]. – Access mode: https://finuni.ru/manipulirovanie-cenami-i-insiderskaya-informacia/ (date accessed: 20.02.2020).

10. Investing for beginners – where to start? Important tips and basics [Electronic resource]. – Access mode: https://trader-nt.ru/investirovanie-dlya-nachinayushhih-s-chego-nachat-vazhnye-sovety-i-osnovy/ (date accessed: 20.02.2020).

11. How to start playing on the stock exchange for beginners [Electronic resource]. – Access mode: https://vse–investicii-ru.turbopages.org/s/vse-investicii.ru/beginner/kak-igrat-na-birzhe (date accessed: 10.07.2020).

12. Law of the people’s Republic of China on Securities 2005-10-27 [Electronic resource]. – Access mode: http://www.csrc.gov.cn/pub/csrc_en/laws/rfdm/statelaws/ (date accessed: 10.07.2020).

13. Market Abuse Directive 2003/6/EC [Electronic resource]. – Access mode: https://eur-lex.europa.eu/legal-content/EN/ (date accessed: 10.07.2020).