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 ?
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.
There has also been consensus insider buying during the month of November at
It cannot show that it is always wrong, either legally or morally, for insiders to trade on material, non-public information, but only that it is wrong in the absence of bona fide agreements to allow insider trading.
Manne argues first that insiders trading on nonpublic material information contribute to improving the informational efficiency of stock prices.
There are horror stories in which taxpayers exercised options in a high-flying stock and failed to sell the stock before the price dropped, due to Securities and Exchange Commission (SEC) and/or corporate insider trading restrictions.
Anyone following the business press over the recent months has been inundated with reports about illegal insider trading by top executives.
Martha Stewart had no fiduciary obligation to anyone, and no one had ever been charged before with insider trading because his broker tipped him to another customer's sales.
If the Insiders succeed, their already-developing global government would become the most powerful force on Earth.
In general, insider trading occurs when a person has "material, nonpublic information" about a security or its issuer and buys or sells that security.
Insiders can be non-starters because they've been in a job long enough to have powerful enemies who'll lobby for an outsider.
Insider knows better than to wear his ambition on his sleeve, like Padilla has.
Insiders will frequently exercise options and then sell the acquired shares.