IDENTIFICATION OF THE NATURE OF INSIDE INFORMATION IN STOCK EXCHANGE

Information is the most valuable property in stock exchange market in such a way that the more investors are informed, the better they can succeed in the market. Sometimes, in such circumstances, because of a great gap between the management and the ownership in the big public companies, administrators of these companies find themseleves in a better informational situation in comparison with the ordinary shareholders, so they possess the inside information about the company. The existence of this informational superiority is inevitable but it will reduce the public confidence about stock exchange if it is abused. The first step for preventing the abuse of inside information in stock exchange is to define such a information. In this way, the authors of the article, by finding a comprehensive definition of inside information, try to distinguish between juridical and economic meaning of this term.