Insider trading
In this lesson, you'll learn what insider trading is, why it's illegal, and how to avoid breaching professional ethics when trading shares.
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In this lesson
- 0:00 Insider trading explained
- 0:23 Real-world insider trading example
- 1:10 Confidentiality breach scenario
- 1:53 Ethical principles and share trading
- 2:21 ACCA code of conduct requirements
About this lesson
Insider trading occurs when someone uses confidential, non-public information about a company to trade shares for personal gain—and it carries serious legal and professional consequences. You'll explore two key scenarios: a finance team member selling shares before unfavourable financial statements are released, and a CFO disclosing company performance to someone outside the business who then trades on that information. The core principle is simple: you can only trade shares using information available to the public. As an accountant, breaching confidentiality by using insider knowledge for personal advantage violates the ACCA code of conduct and puts you at significant risk. This lesson is essential for anyone working in listed companies or holding shares in their employer, ensuring you understand the boundary between legitimate and illegal trading activity.
Duration: 3m
Transcript
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