Price sensitive information includes periodical financial results of acompany, intended declaration of dividend, issue or buyback of securities, any major expansion plans or execution of new projects,amalgamation, merger, takeovers, disposal of the whole orsubstantial part of the undertaking and any other significant changesin policies, plans or operations of the company.
How does Insider trading work?
An insider buys the stock (he might also already own it). He thenreleases price-sensitive information to a small group of people closeto him, who buy the stock based on it, and spread the informationfurther. This results in an increase in volumes and prices of the stock.The inside information has now become known to a larger group of people which further pushes up volumes and prices of the stock.