In short
- Inside information is precise, not public and could move the price.
- Using it to trade, or passing it on, can be abuse.
- Spreading false information or distorting a price is also covered.
- In Morocco, the subject falls notably under Law 43-12 and the AMMC.
The main types of market abuse
| Abuse | What it is | Made-up example |
|---|---|---|
| Insider trading | Using inside information to buy or sell. | An employee buys before a big contract is announced publicly. |
| Price manipulation | Giving a misleading picture of price or demand. | Orders placed to suggest interest that does not exist. |
| False information | Spreading false or misleading information. | An invented rumour meant to push up a share. |
What is inside information?
In general, it has three features: it is precise, it is not yet public, and it could influence the price if known. An unpublished result or a confidential planned deal can be examples. An analysis based on public documents is not.
Why it is forbidden
If some people can trade on information others do not have, the game is unfair, and savers may lose confidence. This is why the AMMC’s missions include ensuring transparency, market integrity and equal treatment of savers.
Possible consequences
Moroccan law provides for criminal and administrative sanctions. The AMMC can carry out investigations and impose sanctions. Exact penalties depend on the texts and on each case: the reference remains Law 43-12 and the AMMC’s guide on this subject.
Everyday traps
- A “tip” from a relative who works at a listed company can cause problems, for them and for you.
- A message in a group announcing “big news” may be false, or meant to push up a price.
- Social media: spreading a financial rumour is not without risk.
This guide gives a general explanation and is not legal advice. If in doubt about a specific case, contact a legal professional or the AMMC.
Frequently asked questions
Is a rumour read online inside information?
Not necessarily. A rumour can be false, and spreading it can itself cause problems. Each case depends on the facts.
How can I report suspicious behaviour?
The AMMC receives complaints and reports. Keep the messages and useful documents.
This article is for information and educational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investing in shares involves a risk of capital loss. Check figures against official sources (Casablanca Stock Exchange, AMMC) and consult a licensed professional. Read the full disclaimer.
