A s the financial markets in the Caribbean continue to deepen, there is concern that the rules and regulations aren’t evolving fast enough to keep up with the dynamic nature of dealings by insiders in a company.
As per Investopedia, insider trading involves trading in a public company’s stock by someone who has non-public, material information about that stock for any reason. Insider trading can be either illegal or legal depending on when the insider makes the trade.
This practice has led to the prosecution of TV personality Martha Stewart in July 2004 and most recently partner at McKinsey and Company Puneet Dikshit for his use of insider details. The former sold her shares to avoid a US$45,673 loss on Imclone Systems stock while Dikshit turned US$26,000 into US$450,000 by buying out of the money call options days before the announcement of Greensky’s takeover by Goldman Sachs Group Inc. The US Securities and Exchange
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