Insider


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Insider

In the context of federal regulation of the purchase and sale of Securities, anyone who has knowledge of facts not available to the general public.

Insider information refers to knowledge about the financial status of a company that is obtained before the public obtains it, and which is usually known only by corporate officials or other insiders. The use of insider information in the purchase and sale of stock violates federal securities law.

Insider trading entails the purchase and sale of corporate shares by officers, directors, and stockholders who own more than 10 percent of the stock of a corporation listed on a national exchange (any association that provides facilities for the purchase and sale of securities, such as the New York Stock Exchange). Insider reports detailing such transactions must be submitted monthly to the Securities and Exchange Commission.

insider

n. someone who has a position in a business or stock brokerage, which allows him/her privy to confidential information (such as future changes in management, upcoming profit and loss reports, secret sales figures, and merger negotiations) which will affect the value of stocks or bonds. While there is nothing wrong with being an insider, use of the confidential information unavailable to the investing public in order to profit through sale or purchase of stocks or bonds is unethical and a crime under the Securities and Exchange Act. (See: insider trading)

See: bystander, member
References in periodicals archive ?
Develop, implement, manage or support an ITP per National insider Threat Policy requirements.
Build an Insider Threat Program Risk Management Framework that will support the ITP.
policymakers have failed to grasp that when insiders are subject to strict trade-disclosure requirements and firms are not, insiders have a strong incentive to exploit the relatively lax trade-disclosure rules that apply to firms in order to engage in indirect insider trading: having the firm buy and sell its own shares at favorable prices to increase the value of the insiders' equity.
firms are commonly thought to have relatively diffuse ownership, average insider ownership in publicly-traded firms is, in fact, surprisingly high.
Our database of insider trading filings shows that three other insiders bought shares in May of this year (http://www.
The argument from harm maintains that insider trading is wrong because of the social harm it causes, given that we understand "causing harm" expansively, as causing a failure to attain optimal social welfare or social good.
On the other hand, not until 1966, when Henry Manne published his book, Insider Trading and the Stock Market, do we find some economic analysis of insider trading.
Because, when enacting section 83(c)(3), Congress decided that the only provision of the securities law that would delay taxation under that section would be section 16(b), potential liability for insider trading under Rule 10b-5, for example, does not cause rights in property taxable under section 83 to be substantially nonvested.
To get at managers' thinking about their own firms, I've analyzed the insider trading decisions of top executives in approximately 2,500 publicly traded firms over the period from 1993 to 2001.
Insider trading is the epitome of an undefined, unconstitutionally vague offense.
When the newly informed American recognizes that powerful Insiders are conspiring to consolidate economic and political powers in a one-world government, he may also conclude that the situation is hopeless.
Partners and staff face tough decisions when managing the insider trading risk inherent in the freedom to buy and sell securities.