insider trader

Privileged information exploiter

An insider trader is someone who buys or sells securities based on material, nonpublic information—knowledge unavailable to ordinary investors.

The term typically implies illegal activity: The CEO was prosecuted as an insider trader after dumping shares before the earnings report.

Corporate executives, board members, and others with access to confidential business information face strict regulations about when they can trade.

Related

tip · confidential · securities · Martha Stewart · hedge fund · prosecution · guilty plea · profit · shares · leak · unfair advantage · scandal · white collar · fraud · secret · investigation · information · felony

Categories
Opposites
legality/ethics of market participation

insider traderoutsider

One excluded from group

retail investor · small investor · honest broker · fiduciary · passive investor

information access/advantage

insider traderoutsider

One excluded from group

retail trader

role in market integrity

insider tradercompliance officer

Oversees organizational rule-following

whistleblower · fraud investigator · auditor

Family

insider, trader, inside, trade, insiders, traders, insides, trades, traded

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Negative · Rated G