Introductory and explanatory material
Pages 4

The various recitals to the Directive set out one of the main arguments for prohibiting insider dealing.66 One of the basic objectives of European Economic Community ‘legislation’67 has been the establishment and subsequent ‘functioning’ of the internal market.68 The recitals state that the ‘secondary market in transferable securities’ plays an important role in the financing of ‘economic agents’.69 However, for that ‘secondary market’ to play its role effectively, every measure must be taken to ensure that it operates smoothly and this depends, to a large extent, on the confidence which the market inspires in investors.