insider trading
Secret market advantage
Insider trading is buying or selling securities based on material information not available to the public.
A corporate executive who sells stock before announcing bad earnings, or a lawyer who buys shares knowing a merger is coming—both commit insider trading.
The practice is illegal because it undermines fair markets: He was convicted of insider trading and barred from the industry.
Homemaking media entrepreneur
- whistleblowerInsider who reports misconduct
- investigationFormal examination of facts
- indictmentFormal charge from jury
- convictionFirmly held belief
prosecution · plea deal · sentencing · headline · testimony · resignation · cover-up · expose
Unearned competitive benefit
- level playing fieldEqual competitive conditions
- investor confidenceFaith in financial prospects
- exploitationSelfish use of others
- breach of trustViolation of confidence
fiduciary duty · conflict of interest · transparency · accountability · cheating · dishonesty · corporate governance · public trust
Illegal financial market deception
- tippingPaying beyond the bill
- market manipulationArtificially distorting asset prices
- misappropriationWrongful taking of entrusted assets
- blackout periodEnforced trading suspension interval
compliance · disgorgement · civil penalty · criminal charges · Chinese wall
Senior organizational leader
- directorOne who leads
- board memberGoverning body participant
- officerAuthority figure in uniform
- tipperOne who leaves extra
hedge fund manager · analyst · broker · investment banker · accountant · lawyer · consultant · informant
confidential information
Private data requiring discretion
- front-runningLeading a competition early
Martha Stewart
Homemaking media entrepreneur
- whistleblowerInsider who reports misconduct
- investigationFormal examination of facts
- indictmentFormal charge from jury
conviction · prosecution · plea deal · sentencing · headline · testimony · resignation · cover-up · expose · perp walk
unfair advantage
Unearned competitive benefit
- level playing fieldEqual competitive conditions
- investor confidenceFaith in financial prospects
- exploitationSelfish use of others
breach of trust · fiduciary duty · conflict of interest · transparency · accountability · cheating · dishonesty · corporate governance · public trust
securities fraud
Illegal financial market deception
- tippingPaying beyond the bill
- market manipulationArtificially distorting asset prices
- misappropriationWrongful taking of entrusted assets
blackout period · compliance · disgorgement · civil penalty · criminal charges · Chinese wall
executive
Senior organizational leader
- directorOne who leads
- board memberGoverning body participant
- officerAuthority figure in uniform
tipper · hedge fund manager · analyst · broker · investment banker · accountant · lawyer · consultant · informant · accomplice
- economic ethicsfair wages, fair pricing, economic justice, economic fairness, wealth redistribution
- federal crimesbank robbery, kidnapping, counterfeiting, tax fraud, wire fraud
- financial fraudsecurities fraud, bank fraud, accounting fraud, defalcation, embezzler
- Financial ScandalsEnron, Bernie Madoff, Ponzi scheme, securities fraud, accounting fraud
- market fraudmarket manipulation, securities fraud, pump and dump, spoofing, front running
- crimerobbery, accomplice, alibi, burglary, conspiracy