... 'inside information' relating to a company for the purpose of gaining an unfair advantage in transactions involving company shares or other company securities."2 In summary, Part V of the Criminal Justice Act 1993 provides that a person is guilty of an offence if: a) he is an insider; b) he is aware of specific and precise information which relates to the shares themselves or the state of the company which issued them; and c) the information has not yet been made public; d) the information is of the sort which, if it had been made public, would be likely to have had significant effect on the share price; and e) he has the intention that the dealing is to make a profit or prevent a loss. An insider includes directors, employees and shareholders (primary insiders) who by virtue of their employment are in a position to obtain this information. According to Welch et al, "a person ...

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