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 ?
To fix notation, we denote each insider trade as Trade 0.
We calculated the volatilities using the 60 trades prior the insider trade and the 60 trades before the matched trade.
Our next task is to investigate the extent to which market professionals use their recently discovered knowledge regarding the arrival of an insider trade.
Following the literature, we define order imbalance as the net difference between buyer- and seller-initiated orders around an insider trade (we exclude insider trade itself from this computation).
The first column shows the percentage of sample announcements where at least one insider trade (either purchase or sale) occurs during the week.
Second, recall from Exhibit 1 that the CARs "reverse" near the time of insider trade execution.
Consistent with prior results for post-announcement trades, both buy and sell portfolios exhibit a price reversal following insider trade execution.
com generates updated Insider Trading Charts and Statistics, clearly demarcate open-market from non-open-market insider trades, making investors easily screen out the noise in thousands of insider trading data reported by SEC every day.
com issues new research reports on large insider trades found in the above Blue Chips or Penny Stock companies.
An added difficulty in extracting useful information from executives' insider trades is the increased prevalence of equity-based compensation for top managers: most top executives these days receive significant grants of stock options and restricted stock, and hold considerable amounts of both vested and unvested equity in their employer.
The confusion about MoSys insider trades has arisen because the recent reports of filings make it appear as if there are significant new filings of proposed insider sales on Form 144 when in fact the filings relate to sales made in November 2001.
com found some significant insider trades in the stock market.