Marcus, a director of a listed company, learns in confidence of an unannounced takeover bid and buys shares in the target before the announcement. Which offence is he most likely to commit?
Answer and explanation
Correct answer: D. Insider dealing under Part V of the Criminal Justice Act 1993
- Step 1: Insider dealing is dealing in securities on the basis of inside information obtained as an insider.
- Step 2: Inside information is specific, not public and likely to affect price significantly if made public, and Marcus holds it through his office.
Answer
Insider dealing under Part V of the Criminal Justice Act 1993.
Why not the others: Fraudulent and wrongful trading concern a company's creditors; theft concerns property belonging to another.
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