Insider Buying

Insider Buying

The purchase of shares of stock in a corporation by someone who is employed by the company. Insider buying should not be confused with insider trading. Insider trading refers to corporate insiders trading on private information, an activity that is illegal. However, insider buying is based on public information in a situation where insiders believe that their stock is undervalued.

Insider trading is often a temptation faced by corporate officers and board members who know of new products or inventions that could cause the stock price to rise. Those in this position must carefully adhere to special regulations when purchasing stock in their companies to avoid penalties. On the other hand, insider trading typically occurs when employees believe that the public is not valuing their stocks properly. Because insider transactions are public information, knowing that insiders are purchasing stock can signal future stock appreciation.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • insider buying — /ɪnˌsaɪdə baɪɪŋ/, insider dealing /ɪnˌsaɪdə di!lɪŋ/, insider trading /ɪnˌsaɪdə treɪdɪŋ/ noun the illegal buying or selling of shares by staff of a company or other persons who have secret information about the company’s plans …   Dictionary of banking and finance

  • Insider trading — is the trading of a corporation s stock or other securities (e.g. bonds or stock options) by individuals with potential access to non public information about the company. In most countries, trading by corporate insiders such as officers, key… …   Wikipedia

  • insider dealing — or insider trading noun The criminal offence of using information not publicly available to deal on the Stock Exchange • • • Main Entry: ↑inside * * * insider dealing UK US noun [uncountable] the crime of buying or selling shares in a company… …   Useful english dictionary

  • insider trading — n: the illegal use of esp. material inside information for profit in financial trading see also tippee Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. insider t …   Law dictionary

  • insider trade — ➔ trade1 * * * insider trade UK US noun [C or U] ► STOCK MARKET an occasion when a company s shares are bought or sold by someone who is in a high position in that company: »The company stopped insider trades after Sept. 15 under a policy that… …   Financial and business terms

  • insider trading — insider trader. the illegal buying and selling of securities by persons acting on privileged information. [1965 70] * * * Illegal use of insider information for profit in financial trading. Since 1934, the Securities and Exchange Commission has… …   Universalium

  • insider dealing — UK / US or insider trading UK / US noun [uncountable] the crime of buying or selling shares in a company using information that is available only to people working within that company …   English dictionary

  • insider trading — insider dealing UK / US or insider trading UK / US noun [uncountable] the crime of buying or selling shares in a company using information that is available only to people working within that company …   English dictionary

  • insider trading — n. the buying or selling of a company s stock by one who has access to information not made public: trading based on such information may be illegal …   English World dictionary

  • insider nontrading — (in.sy.dur NON.tray.ding) pp. Deciding against buying or selling a stock based on insider information. Also: insider non trading. Example Citation: To understand insider nontrading and to see the asymmetry problems it can cause, imagine an… …   New words

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