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)

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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.
In any event, autocrats interested in profiting by inside trading are not likely to promote either the passage or the active enforcement of laws against insider trading.
See Fried, supra note 11, at 337-40; Mark Klock, Mainstream Economies and the Case for Prohibiting Inside Trading, 10 GA.
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.
Do a little digging, though, and a much less black-and-white picture emerges, one also colored by fudged numbers, inside trading, tumbling stock values.
He recalled how he noticed while going through the case file about the allegation of 'inside trading' and hinted at reviving the issue again on a suo motu.
They have been accused of maneuvering prices of s and inside trading in the Bank of Punjab.
The members of the committee were of the view that apparently it seemed that everything was done in accordance with the rules and procedures and there was no issue of inside trading, however, the committee deferred discussions to have some more input from SECP on the issue.
ISLAMABAD -- In an interesting twist at a time when Aqeel Karim Dhedhi (AKD) has been put on the Exit Control List in the OGRA scandal for inside trading and stock market manipulation, AKD has managed to sell his frequency spectrum in DV Com Ltd.