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Moose423956
12th May 2011, 15:48
Does anyone know what constitutes insider dealing in shares?

The reason I ask is that my employer's share price (yes, I'm a permie, get over it!) has dropped from >100p to <30p recently. I know the company is strong, and it will recover, so I thought I might buy some shares.

I contacted the finance director to get permission to buy shares (we have to do that), and was told I'm not allowed to buy any. I don't know why.

Would it be illegal if I got my partner or a relative to buy some shares for me under their name? I'm not party to any knowledge about the future of the company, I'm just trying to take advantage of what I think is a good opportunity. I'm worried if I go ahead and buy some shares through someone else that I'll be doing something illegal.

Any thoughts?

Old Greg
12th May 2011, 15:52
Does anyone know what constitutes insider dealing in shares?

The reason I ask is that my employer's share price (yes, I'm a permie, get over it!) has dropped from >100p to <30p recently. I know the company is strong, and it will recover, so I thought I might buy some shares.

I contacted the finance director to get permission to buy shares (we have to do that), and was told I'm not allowed to buy any. I don't know why.

Would it be illegal if I got my partner or a relative to buy some shares for me under their name? I'm not party to any knowledge about the future of the company, I'm just trying to take advantage of what I think is a good opportunity. I'm worried if I go ahead and buy some shares through someone else that I'll be doing something illegal.

Any thoughts?

It's fine. Go ahead.

TimberWolf
12th May 2011, 16:15
Where do you work btw? :D

MarillionFan
12th May 2011, 16:15
Does anyone know what constitutes insider dealing in shares?

The reason I ask is that my employer's share price (yes, I'm a permie, get over it!) has dropped from >100p to <30p recently. I know the company is strong, and it will recover, so I thought I might buy some shares.

I contacted the finance director to get permission to buy shares (we have to do that), and was told I'm not allowed to buy any. I don't know why.

Would it be illegal if I got my partner or a relative to buy some shares for me under their name? I'm not party to any knowledge about the future of the company, I'm just trying to take advantage of what I think is a good opportunity. I'm worried if I go ahead and buy some shares through someone else that I'll be doing something illegal.

Any thoughts?

In theory you would have to be on an insiders list. ie. You have access to finance information that allows you to make this decision based on 'inside information'.

If you're a grunt for example then it should not apply. Normally there is a close out period for insiders, which means that yes they can buy as well.

If you aint on the list then you can buy on the open market.

d000hg
12th May 2011, 16:28
I'd be suspicious of a contract that says you need their permission to buy shares unless you have this delicate info. But then companies pull all kinds of stuff.

BlasterBates
12th May 2011, 16:38
If you have to get permission to buy shares and you don't have it then you're not allowed. For example if you know they have some orders coming in or you were on sales visits.

In any case even if the company is strong enough to recover it could still take several years to get it's share price back to where it was.

If you want to invest in shares read up about it first or invest in a portfolio.

You won't make a quick buck on a hunch. You'd be better off reading an investors mag and following their advice.

Small or medium sized companies it isn't unusual for share prices to drop over 90%, and then stay there for ever.

Wouldn't touch them with a barge pole.