Considering Legal Aspects of Insider Trading in Security Markets (A Comparative study)

Investor Confidence in security markets depends the assurance afforded to investor that they are placed on an equal footing and that they will be protected against the improper use of Inside information. The aim of the insider Trading Law should not be to eliminate all information advantages, but to proscribe those advantages whose use would be improper, because their acquisition was not the result of skill or effort but of the mere fact of holding a particular position. The article aims to clarify elements of insider trading and prohibitions applicable to insiders. Then, the criminal nature of insider trading and it's effects to the contract will be discussed.