recruitment / insider trading
recruitment / insider trading
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anonymous-user

Original Poster:

85 months

Tuesday 3rd March 2015
quotequote all
if someone is involved in the recruitment of a Board member for a listed plc, I expect it would be regarded as insider trading if shares were traded in advance of the recruitment being notified to the stock market

is that correct?

how about for the recruitment of a role at the next level down - reporting to the Board, but that would not trigger an RNS at any stage?

R11ysf

1,968 posts

213 months

Tuesday 3rd March 2015
quotequote all
If you act on any information which is likely to affect the share price of a publicly traded company and is not in the public domain then it can be viewed as insider trading. This is quite a good guide http://www.out-law.com/page-11115

In your case the placement of an employee is unlikely to affect the share price unless it is a major placement of an important CEO or CFO. Replacing a sales manager isn't, in reality, enough to get the market giving a crap. Having said that, if it was and the share price moved and you'd bought those shares as you been given the placement and told had the position, then, yes, you would have committed an offence.