Insider Trading. Insider trading is a poorly defined concept with roots in adverse selection theory and the efficient market hypothesis (EMH). The popular notion is that insiders have an unfair advantage because they possess materially significant and non-public information â an informational asymmetry.
In format, a letter of guarantee is normally a short document that addresses a specific transaction. The text contains data that establishes the identity of the buyer, his or her relationship with the bank, and the nature and general value of the asset that is pledged as collateral.
In English law, a guarantee is a contract to answer for the payment of some debt, or the performance of some duty by a third person who is primarily liable for that payment or performance. It is a collateral contract, which does not extinguish the original obligation for payment or performance.