| Abstract [eng] |
In this master thesis the insider information institute is analysed through the light of EU and US regulation. Insider information as price determinant is being analysed through economic and financial context, EU and US regulation, case law and doctrine in order to establish what are the elements of insider information, how its materiality is determined. Author also formulates the economic content of insider information. Author analyses real market event in order to establish what impact on the market has inside information. Also, he analyses what market impact insider trading has on the market. The performed analysis reveals elements of insider information, out of which the most significant for this master thesis is materiality. Information materiality is evaluative-economic category. Materiality is determined by applying various tests, such as: rational investor, magnitude and anticipation, bright line and price sensitivity tests. Information itself has to have financial or operational impact and shall be associated directly or indirectly with the issuer’s activity. Therefore, author establishes economic content of inside information. Economic content is defined through the elements of materiality, impact and connection with the activity. Also, although the research has shown what effect insider information can have on the market, it should be noted that it must be evaluated individually in each case. Insider trading itself can help ensure market efficiency, but this theory has little basis. It is not reasonable to say that market participants are losing because of others' insider trading, especially in today's market practice, because there is only potential unrealized profit. On the other hand, insider information can encourage the use of available market leverages, i.e. manipulate the market to maximize profits. |
