Fundamentals of Criminalizing the Use of Inside Information in the Stock Market

Abstract

Inside information is information that has not been disclosed to the public, which is directly or indirectly related to the securities being traded or their issuers and, if published, would affect the price or decision-making of investors to trade. The Securities Market Law has criminalized the use of inside information. Its criminalization has been based on principles such as protecting the public interest of the market, administering justice, establishing economic security, eliminating and preventing market disruption, and the principle of no harm or resentment. Although the scope and inclusion of these principles encompass all crimes, more attention has been paid to economic crimes, especially crimes of the stock exchange and securities markets; the crime of inside information, according to the Securities Market Law, is committed by legal entities such as brokers, broker-dealers, market operators, and companies registered in this market, and like other ordinary crimes, it has material, moral, and legal elements. The securities market, which is a specialized market; Therefore, the crimes formed in it have more problems than ordinary crimes; considering such problems, it is obvious that criminalization, its foundations, pillars, and conditions need to be discussed in terms of criminal law; so that the market is protected from the anomalies and disorders that have been created in it, so that losses and damages do not occur to marketers, and justice prevails in the capital market.