Insider

Dictionary Says

Definition of 'Insider'

A director or senior officer of a company, as well as any person or entity that beneficially owns more than 10% of a company's voting shares. For purposes of insider trading, the definition is expanded to include anyone who trades a company's shares based on material non-public knowledge. Insiders have to comply with strict disclosure requirements with regard to the sale or purchase of the shares of their company.
Investopedia Says

Investopedia explains 'Insider'

Securities legislation in most jurisdictions has stringent rules in place to prevent insiders from taking advantage of their privileged position for pecuniary gain through insider trading. Offenses are punishable by disgorgement of profits and fines, as well as incarceration for severe offenses.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Insider Information

    A non-public ...
  2. Insider Trading

    The buying or ...
  3. Bullet Dodging

    A form of option ...
  4. Misappropriation Theory

    A perspective ...
  5. Section 16

    A section of the ...
  6. SEC Form 10-K405

    A form used by ...
  7. Hot Hand

    The notion that ...
  8. Muppet Bait

    Naive investors ...
  9. Stop Trading On Congressional ...

    A bipartisan ...
  10. Closely Held Shares

    The shares in a ...

Articles Of Interest

  1. Putting Management Under The Microscope

    We tell you where to find the telltale signs of corporate misdeeds.
  2. What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.
  3. IPO Lock-Ups Stop Insider Selling

    Ownership plays a key role when companies go public. Find out how.
  4. Can Insiders Help You Make Better Trades?

    Find out why the trading activity of owners and executives can be a valuable trade-confirmation tool.
  5. Pay Attention To The Proxy Statement

    Don't overlook this overview of a company's well-being.
  6. Delving Into Insider Investments

    Keeping tabs on company executives can provide clues about where a stock is headed.
  7. When Insiders Buy, Should Investors Join Them?

    Insider tracking can inform your investment strategy, but it requires research and a level head. Find out what to look for.
  8. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
  9. Research Report Red Flags For Brokers

    Discover how to look past analysts' ratings to find winning stocks for your clients.
  10. Active Investment Management Misses The Mark

    Active investment management offers little advantage in the secondary capital markets.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center