Insider trading (Insiderhandel)
The illegal trading of securities based on information that is not yet public.
In short
As of 8 October 2026Insider trading is the illegal buying or selling of securities based on information that is not yet public, such as a planned takeover. The ban is set out in Article 14 of the EU Market Abuse Regulation. In Germany insider trading is a criminal offence punishable by up to five years in prison, and BaFin investigates suspected cases.
Insider trading happens when someone buys or sells shares because they know price-sensitive information the market does not yet have. That could be a manager, but also an adviser, a bank employee or a friend who was told something. It is banned under Article 14 of the EU Market Abuse Regulation.
In Germany insider trading is a criminal offence punishable by up to five years in prison. BaFin analyses trading data and investigates suspicious cases. Directors' dealings, by contrast, are legal and public: trades by board members are reported and published. News must be released as an ad hoc disclosure.
Example: anyone who buys shares ahead of a secret takeover commits a crime. How to spot investment scams is shown in the scam check.
Related terms
Sources
- Wertpapierhandelsgesetz (WpHG), § 119 Strafvorschriften
- Verordnung (EU) Nr. 596/2014 (Marktmissbrauchsverordnung, MAR)
As of 8 October 2026 · Educational content, not investment or tax advice.