Incremental cash flows and Insider dealing: Difference between pages

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In financial decision making, the incremental cash flows are those which will be different, depending on whether or not the decision is implemented.
Dealing in company securities with a view to making a profit - or avoiding a loss - while in possession of information that, if generally known, would affect their price.


It is only the incremental cash flows which should be taken account of in making the related financial decision.


In the modern era, insider dealing is illegal in fully developed markets.


For example, 'Sunk costs don't count'.
However, many commentators believe that the crime remains widespread, because of the difficulties of detecting it and of proving it in law.
 
 
Also known as 'insider trading'.




== See also ==
== See also ==
* [[Cash flow statement]]
* [[Closed period]]
* [[Cashflow]]
* [[Front-running]]
* [[Discounted cash flow]]
* [[MAD]]
*[[Incremental]]
* [[Market abuse]]
* [[Incremental costs]]
* [[Market Abuse Regulation]] (MAR)
* [[Incremental revenue]]
* [[Security]]
* [[Opportunity cost]]
* [[Semi-strong market efficiency]]
* [[Scarce resource analysis]]
* [[Sunk cost fallacy]]
* [[Sunk costs]]


[[Category:The_business_context]]
[[Category:Context_of_treasury]]
[[Category:Corporate_finance]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Investment]]
[[Category:Ethics]]

Revision as of 21:27, 24 June 2022

Dealing in company securities with a view to making a profit - or avoiding a loss - while in possession of information that, if generally known, would affect their price.


In the modern era, insider dealing is illegal in fully developed markets.

However, many commentators believe that the crime remains widespread, because of the difficulties of detecting it and of proving it in law.


Also known as 'insider trading'.


See also