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Glossary · PSX term

Insider trading.

Insider trading is dealing in shares using important non-public information, and it is illegal.

Definition

People with access to undisclosed price-sensitive information, such as directors or staff, must not trade on it or pass it to others. The SECP monitors and prosecutes insider trading to keep markets fair.

Worked example

A director buying shares just before announcing unpublished bumper results would be insider trading.

Related on PSX Clarity

Securities and Exchange Commission of Pakistan (SECP)

Material information

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