insider trading

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insider trading

n. the use of confidential information about a business gained through employment in a company or a stock brokerage, to buy and/or sell stocks and bonds based on the private knowledge that the value will go up or down. The victims are the unsuspecting investing public. It is a crime under the Securities and Exchange Act, for which Ivan Boesky and others have been sentenced to prison for relatively short terms and only small fines, considering the percentage impact on their accumulated wealth. Joseph P. Kennedy, father of President John F. Kennedy, made much of his fortune in the 1920s by insider trading before it was a crime. When the Securities and Exchange Commission was created in the early days of the New Deal (1933), President Franklin D. Roosevelt appointed Kennedy to the Commission on the theory that it took an insider to catch insiders. (See: insider)

insider trading

noun criminality, disclosure of connidential information, illegal disclosure, illegal use, illegal use of secret information, illegality, impropriety, infraction, infringement, misappropriate nonpublic information and material, prohibited use of confidential information, SEC violation, use of restricted information, violation of law
Associated concepts: Rule 10b-5, Securities Exchange Act
References in periodicals archive ?
Basically, on top of inside trading, conflict of interest, manipulation and endless opportunity for speculation, Hollywood fears "shorting," or betting on the movie's failure at the box office.
This aborted tampering with evidence does not prove Stewart was guilty, but it does illustrate the uncertainty created by the government's murky inside trading rules.
The case is one of an increasing number brought by the SEC for inside trading.
The writer of the email is an impersonator who purports to be the CEO of the company and offers to provide inside trading information for a fee of $500.
He has prosecuted a big number of Wall Street crooks for inside trading.
He has been hanging out with a gang who are involved in drugs and lots of underhand inside trading.
Investigators will comb through records to determine whether the mother firm illegally supported the subsidiaries and whether there was inside trading or cross-loan guarantees.