ABSTRACT
Provisions designed to deal with the abuse of insider trading have been introduced into Commonwealth Caribbean company law by the Companies Acts in Antigua, Barbados, Dominica, Grenada, Guyana, Montserrat, St Lucia, St Vincent and Trinidad and Tobago. 1 Insider trading is generally regarded as having occurred where purchases or sales of securities of a company are effected by or on behalf of a person whose relationship to the company is such that he is likely to have access to price-sensitive information concerning the company not known to the counterparty to the securities transaction. 2 Use of such inside information allows the insider to obtain more favourable terms in the contract of sale than would have been the case if the counterparty had equal access to the information in question. Thus, insider trading has the potential of distorting market prices in a way which is unfavourable to outsiders.
