PRIVILEGED INFORMATION AT SECURITIES EXCHANGE

Abstract

Privileged information is defined as special benefit granted to, or enjoyed by an individual or certain group of people and as such is exclusively defined by regulation. In differentiation privileged form ordinary information, the publicly traded company is obligated to make accessible to public all information which refers to the company. The law of securities market and other financial instruments of Serbian Republic, defines privileged information as information which regards to securities and which could significantly influence to securities prices if it is make known to public. In law of European Union privileged information is also defined as inside information about company’s activities which is not announced and as such is not accessible to the public. The use of privileged information is prohibited to all persons which know or had been known to have privileged information, and is especially related to persons which in doing their professions are obligated to know, or in some point are became aware of having privileged information. The unique attitude of law theory and practice is that every securities trading which is related to privileged information is illegal. There is not much processed cases in law practice which are related to inside trading or securities trading based on privileged information in countries which have developed financial markets and it is especially rear in Serbian Republic where equity markets are making their first steps.