The definition of the inside information

Inside information is a basic term for legal regulations concerning insider trading as well as information duties. Having discussed both aforementioned institutions, the literature touched the problem of this concept, although still many questions have been left without answer. Inside information is characterised by four features: it is of precise nature, relates directly or indirectly to one or more issuers of financial instruments or to one or more financial instruments, has not been made public and has a significant effect on the prices of financial instruments. While interpreting this concept, convergence with the aim of the directive, from which the term inside information arises, must be taken into account. Its analysis is of vital importance, since it constitutes a premise for civil, administrative and criminal responsibility.