insider trading legal definition of insider trading. insider trading synonyms by the Free Online Law Dictionary.

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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)

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Moreover, some companies went so far as to skirt insider trading rules and other ethical constricts by timing stock prices at dates either before or after significant corporate events, either increasing or decreasing the share price--practices known as "spring loading" and "bullet dodging" Backdating backlash: will corporate insurers be wiped out by a tidal ... by Kennell, Patrick M. / Best's Review The West Coast SEC enforcement and white-collar defense unit of Skadden Arps Meagher & Flom LLP has won an insider trading case with boardroom ramifications. Stock answer by York, Emily Bryson / Los Angeles Business Journal 2005-48 (IRB 2005-32, 8/8/05) holds that an employee (E) who exercises a nonstatutory option before the end of a six-month "lock-up period" must recognize income from that exercise even if E's sale of the stock is restricted under the insider trading rules. Recent developments: FLPs, option income and home office depreciation by Josephs, Stuart R. / California CPA More results

Moreover, some companies went so far as to skirt insider trading rules and other ethical constricts by timing stock prices at dates either before or after significant corporate events, either increasing or decreasing the share price--practices known as "spring loading" and "bullet dodging"

Backdating backlash: will corporate insurers be wiped out by a tidal ... by Kennell, Patrick M. / Best's Review

The West Coast SEC enforcement and white-collar defense unit of Skadden Arps Meagher & Flom LLP has won an insider trading case with boardroom ramifications.

Stock answer by York, Emily Bryson / Los Angeles Business Journal

2005-48 (IRB 2005-32, 8/8/05) holds that an employee (E) who exercises a nonstatutory option before the end of a six-month "lock-up period" must recognize income from that exercise even if E's sale of the stock is restricted under the insider trading rules.

Recent developments: FLPs, option income and home office depreciation by Josephs, Stuart R. / California CPA

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