Insider Information

Insider Information
A non-public fact regarding the plans or condition of a publicly traded company that could provide a financial advantage when used to buy or sell shares of the company's stock. Insider information is typically gained by someone who is working within or close to a listed company. If a person uses insider information to place trades, he or she can be found guilty of insider trading. Insider trading is illegal when the material information has not been made public and has been traded on. This is because the information gives those having this knowledge an unfair advantage.

Insider information is knowledge about a publicly traded company that could be used to an investor's advantage. Knowing about a company's significant, confidential corporate developments, such as the release of a new product, could provide an unfair advantage if the information is not public, that is, if only a few people know about the developments.

In the United States, the Securities and Exchange Commission (SEC) regulated legal insider trades - where corporate insiders, including officers, directors and employees, buy and sell stock in their own companies. In addition, the SEC investigates instances of illegal insider trading. Those found guilty of insider trading can serve jail time and be fined.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • insider information — n. Information about a corporation that is available only to insiders and not revealed to the general public. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • Insider information — Relevant information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received. The New York Times Financial Glossary * * * insider information UK US noun [U]… …   Financial and business terms

  • insider information — Material information about a company that has not yet been made public. It is illegal for holders of this information to make trade based on it, however received. Bloomberg Financial Dictionary * * * insider information UK US noun [U] (also… …   Financial and business terms

  • insider information — noun important information about the plans or condition of a corporation that has not been released to the public; use for personal profit is illegal • Hypernyms: ↑information, ↑info …   Useful english dictionary

  • insider information — /ˌɪnsaɪdə ˌɪnfə meɪʃ(ə)n/ noun same as inside information …   Dictionary of banking and finance

  • Material Insider Information — Material information, about certain aspects of a company, that has not yet been made public but that will have at least a small impact on the company s share price once released. It is illegal for holders of material insider information to use… …   Investment dictionary

  • insider dealing — insider trading Dealing in company securities with a view to making a profit or avoiding a loss while in possession of price sensitive information that is not generally known (insider information). Under the UK Companies Securities (Insider… …   Big dictionary of business and management

  • information — in‧for‧ma‧tion [ˌɪnfəˈmeɪʆn ǁ fər ] noun [uncountable] 1. facts or details that tell you about something or someone: • This is highly confidential information. • Corporations are making more financial information available to investors. ˈcredit… …   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 — For the Amplifier album, see Insider (album). For other uses, see Insiders (disambiguation) and The Insider (disambiguation). An insider is a member of any group of people of limited number and generally restricted access. The term is used in the …   Wikipedia

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