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Insider trading is an act of buying and selling stocks, etc. before the information is publicly announced.
In this article, we will organize not "how to do" but for beginners how to avoid illegal risks.
What you should know first
Insider trading is an unfair trade that impairs market fairness.
If you have unpublished important information from the Company’s officers, business partners, families, acquaintances, etc., and buy or sell shares before publication, it may be a problem with the Financial Instruments and Exchange Act.
This article is a general commentary to prevent violation of laws and regulations and is not responsible for any illegal act. If you are unsure of the actual judgment, please stop the transaction and check the compliance department of the worker, securities company, and lawyer.
Important Facts
Important facts are corporate information that can greatly affect investors’ decisions.
Examples are as follows:
| Example of information | Why Danger |
|---|---|
| Financial Results | Direct impact on stock prices |
| M&A | Great movement with acquisition expectations |
| Increased shares | Cal supply and demand and share value |
| Disco ed listing and bankruptcy | Change investment decisions |
| Large contract and significant loss | Changes in future performance |
The point is to buy and sell using undisclosed important information rather than knowing the information quickly.
Behavior with high risk
Buying and selling information from employees and business partners
It is dangerous to hear and buy and sell information before the public, such as "It seems that the profit next year will rise greatly", "the acquisition announcement is close".
Use information via family or friends
It is not safe in the route that I heard from the family and came from the acquaintance. The important thing is whether the information is undisclosed, and whether the investment decision is reflected.
Take a SNS or bulletin board leak
Even on the Internet, it is possible to make a problem if you buy or sell using the contents of internal information. We do not guarantee the safety of our products.
I think it is okay because it is a small amount
There is no problem because there is a small transaction volume. JPX also explains that trading volume is not related to the success of insider trading.
Safe investment decisions
Beginners should use public information that anyone can check.
| OK Example | NG Examples |
|---|---|
| Read and analyze financial statements | Buy and Sell with internal information before the announcement of financial results |
| View Securities Report | Use undisclosed information heard from business partners |
| Check timely disclosure and IR materials | Orders before the announcement heard from the family |
| Compare the industry from public news | Get on SNS leaks |
When you get lost, it is safe to respond not to buy or sell, do not recommend to others, leave a record and consult a specialized department.
Common misunderstandings
| misunderstanding | In fact |
|---|---|
| No problem with small amount | Not judged by amount or number of shares |
| If you are a family member | Depending on the information content, it may be subject to |
| SNS | Undisclosed Important Information Dangerous |
| No problem before publication | Special attention is necessary for buying and selling before publication |
- Insider trading is a high risk of illegal trading
- Buying and selling using undisclosed important facts becomes a problem
- It is not safe for families, acquaintances and SNS
- It can be targeted even for small transactions
- Investment decisions are made using public information
In stock investment, it is important to read and solve public information correctly rather than obtaining secret information faster than people.
出典
This article is reconstructed for beginners based on the information of public and market operators related to insider trading regulations.
- Date: 2026-05-09