Protecting Shares Against Those Familiar With Company Secrets

Abstract

Trading in stocks in the stock market constitute a fundamental pillar in building national economies. Therefore, the legislator was keen to protect these stock dealings against those familiar with the company’s secrets by prohibiting such stock dealings if they were based on confidential information that only those familiar with the company’s secrets know about. Whether this information relates to the company issuing the shares, or to the shares themselves, this is because such illegal share dealings lead to a lack or weakness of the desire to deal in shares, as well as the financial markets being out of their normal course, which negatively affects the national economy.