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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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
In order to prevent insider threats, one approach is to collect all of data which flow in network and then analyze whether the data could be a potential insider threat.
Newman went up to the Second Circuit on appeal because the defendants argued that "the district court erred in failing to instruct the jury that it must find that a tippee knew that the insider disclosed confidential information in exchange for a personal benefit." (61) The Government insisted that "Newman and Chiasson were criminally liable for insider trading because, as sophisticated traders, they must have known that information was disclosed by insiders in breach of a fiduciary duty, and not for any legitimate corporate purpose." (62) But the Second Circuit did not agree; instead, it overturned the convictions on the grounds "that the district court's instruction failed to accurately advise the jury of the law." (63)
For nearly a decade, technology in SureView Insider Threat has served U.S.-based enterprises and government agencies in detecting and responding to insider threats.
To mitigate risks from insiders, there needs to be a robust management plan for remote access from a variety of devices and also baselines established for normal network device behavior.
CNN reported this week that insider selling has reached its highest level since 2007, a potentially bearish signal that high-level executives see trouble ahead for stocks.
Catalyst acknowledges that the company's board of directors has formed a special committee (the "Special Committee"), which has announced that it intends to review the Insider Buyout Proposal.
Insider buying is defined as the acquisition of stocks in a listed company by someone who is considered to be an insider such as a director, officer, or employee.
The gravest risk to the Navy may come from insiders on our afloat or undersea assets.
The Insiders are professionals their companies turn to with their most important or challenging projects because their contributions and hard work lead to superior results.
Insiders, who do not have an employee status, can also be looked at: customers, contractors, and business partners.
However, 23 percent of respondents weren't worried about any of the threats included in the poll, "despite insiders being responsible for 48 percent of data breaches recorded in 2016."