Insider Dealing in Takeovers

Traditionally, insider dealing was viewed as a type of trading by a narrow circle of people who have access to insider information by virtue of their special position in a company. Therefore, regulation of insider dealing focussed on the relationship between a company and their employees. In the beginning the emphasis was on determining the victims of insider dealing, which later was pushed more and more to the background. It shifted to a broader scope, i. e. to market confidence, investor protection, a level playing field, and hence stability in the financial system. Therefore, using the example of takeovers this thesis aims at showing that regulators need to reconsider the insider dealing regulations and widen the regulatory framework to meet the objectives through a macroprudential approach.