Buying or selling securities of a publicly-held company by a person who has privileged access to information concerning the company's financial condition or plans
The aim of insider trading law is simple: prohibit people from profiting from advance knowledge of a stock-moving event—be it a merger, an earnings warning or a soon-to-be-published news story.
Shares bought or sold by the company's management or board of directors Also, by individuals that own more than 10% of the company's shares
Insider trading or insider dealing is the illegal buying or selling of a company's shares by someone who has secret or private information about the company. The illegal buying or selling of securities on the basis of information that is unavailable to the public. the crime of using secret information that you have about a company or knowledge of a situation to buy or sell shares at a profit. Illegal use of insider information for profit in financial trading. Since 1934, the Securities and Exchange Commission has prohibited trading while in possession of material nonpublic information. See also arbitrage, Michael R. Milken
Trading by directors, officers, major stockholders, or others who hold private inside information allowing them to benefit from buying or selling stock
buying or selling corporate stock by a corporate officer or other insider on the basis of information that has not been made public and is supposed to remain confidential
The act, in violation of SEC Rule 10b-5, of purchasing or selling securities (or derivative instruments based on those securities) based on information known to the party purchasing or selling the securities in his capacity as an insider (e g , as an employee of the issuer of the securities) or as a result of information illicitly provided to him by an insider Extensive case law exists concerning the varieties of acts which may be considered to be insider trading or the circumstances in which a person may be considered to be an insider or to be trading illegally on the basis of inside information There do not appear to be any cases illustrating the application of the insider trading prohibitions under Rule 10b-5 to the municipal securities market; the concept, however, is applicable to participants in the municipal market See: RULE 10b-5
The practice of buying and selling a company's stock by that company's management or board of directors, or by a holder of more than 10% of the company's shares
(p 106) A form of investment in which insiders use private company information to further their own fortunes or those of their family and friends
An illegal activity that involves trading by management, major shareholders or employees of a firm using information that is not yet publicly available to the markets
When the management of a publicly held company, or members of its board of directors, or anyone else who holds more than 10% of the company, buys or sells its shares, the transaction is considered insider trading This type of trading is perfectly legal, provided it's based on information available to the public But insider trading is illegal if the buy or sell decision is based on knowledge of corporate developments, such as an executive change, an earnings report, or an acquisition or a takeover that has not yet been made public It is also illegal for people who are not part of the company, but who gain access to private corporate information, to trade the company's stock based on this inside information The list includes lawyers, investment bankers, journalists, or relatives of company officials Initial public offering - The first sale of shares to the public, usually by subscription from a group of investment dealers
Illegal trading by anyone considered an insider who has access to non-public information, and who attempts to profit from that knowledge
"Insider trading" is buying or selling a security while having material, nonpublic information about the security, in breach of a fiduciary duty or other relationship of trust and confidence Insider trading may also include "tipping" such information, securities trading by the person "tipped," and securities trading by persons who misappropriate such information Insider trading is a felony, and the SEC can levy large civil penalties for violations
Buying or selling stocks by a company's management or large shareholders based on information that has not yet been made public
Transactions in shares of publicly held corporations by persons with inside or advance information on which the trading is based
illegal stock and securities trading amongst people who have access to private information about a company's financial status
The illegal dealing in shares by people who, because of their privileged position, have information, which materially impacts on the value of the shares, before that information has been made public This type of dealing is extremely difficult to control and is a constant feature of most share markets, especially where special situations such as take-overs are about to occur The only protection is to keep a careful watch on the volume traded, because massive volumes are an indication that someone knows something that you don’t
In one respect, it refers to the legal trading of securities by corporate officers based on information available to the public In another respect, it refers to the illegal trading of securities by any investor based on information not available to the public Many professional investors watch insider activity closely for clues to a company's future BACK TO TOP
Insider trading is the trading (buying or selling) of shares in a company by an insider - i e a senior manager, director, or person who owns more than 10% of the shares of a company Insider trading is not illegal But, if insiders trade on material privileged information - before it becomes known to the general public - that is a problem! This is perfectly legal except when trading takes place using privileged information which has not yet been released to the public We often hear of insiders selling stock if they know that a weak earnings report is about to be issued All insiders must report their trading regularly to the appropriate securities commission This information is available on-line to the public If you are about to invest in a company, you might want to find out if insiders are buying or selling It may give you an indication of their own confidence level in the company
Insider trading refers to the buying and selling of stock by certain shareholders of a corporation If a trade is based on material information about the company that is known only to shareholders and/or employees of the company and not the general public, the trades are forbidden by the Securities and Exchange Commission (SEC) Illegal insider trading also occurs when corporate insiders provide "tips" to family members, friends, or others, and those parties buy or sell the company's stock based on that information
the practice of participating in transactions based on privileged information, gained by one's position and not available to the public When such transactions affect the price, giving an unfair advantage to the trader, it is illegal