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.
- stockGoods kept for sale
- SECStock market regulator
- federal chargesNational-level criminal accusations
- illegalForbidden by statute
- Wall StreetAmerican finance hub
tip · confidential · securities · Martha Stewart · hedge fund · prosecution · guilty plea · profit · shares · leak · unfair advantage · scandal · white collar · fraud · secret · investigation · information · felony
insider traderoutsider
One excluded from group
retail investor · small investor · honest broker · fiduciary · passive investor
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