Listen to a Business English Dialogue About Corporate insider
Orla: Hey Sarah, do you know what a corporate insider is?
Sarah: Hi Orla! Yes, a corporate insider is someone who has access to confidential information about a company, such as its executives, directors, and employees.
Orla: That’s correct. Corporate insiders have a legal obligation not to trade or disclose this confidential information to others, as it could impact the company’s stock price.
Sarah: Exactly. Insider trading, which involves buying or selling securities based on material, non-public information, is illegal and can lead to severe penalties, including fines and imprisonment.
Orla: Right. It’s important for corporate insiders to adhere to strict regulations and ethical standards to maintain transparency and fairness in the financial markets.
Sarah: Yes, insider trading undermines investor confidence and can harm the integrity of the financial system as a whole.
Orla: Absolutely. That’s why regulatory authorities, such as the Securities and Exchange Commission (SEC), closely monitor and investigate suspected cases of insider trading.
Sarah: Yes, and companies also implement internal policies and procedures to prevent insider trading and ensure that confidential information is safeguarded.
Orla: That’s correct. By promoting transparency and accountability, we can help maintain trust and integrity in the corporate world and financial markets.
Sarah: Definitely. It’s essential for everyone involved in the financial industry to uphold ethical standards and comply with regulations to ensure a level playing field for all investors.
Orla: Agreed. By fostering a culture of integrity and compliance, we can create a more transparent and trustworthy environment for investors and businesses alike.