Wall crossing
Formally bringing someone across an information barrier and making them an insider with respect to confidential information.
Why it matters
Relevant to regulated advisors and to any deal involving public securities. Once crossed, the person is restricted from trading on that information until it is public or stale.
A worked example
An advisor discloses a pending transaction to a potential investor, records the wall crossing, and the investor becomes restricted from trading the relevant security.
What is typical
Log every crossing with date, person, and information disclosed. Firms are examined on this record.
Related terms
MNPI
Material non-public information: information not publicly available that a reasonable investor would consider important to a trading decision.
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