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Insider Trading

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Definitions for: insider trading
insider trading

  1. the buying and selling of the company's securities based on material information relating to the company that has not been made public. Insider trading according to this definition is against the law in most countries.
  2. the buying and selling of shares of a public company by its officers, directors, and stockholders who own more than 10% of the company's stock. In the United States, such transactions must be reported monthly to the SEC under Section 16 of the Securities Exchange Act of 1934: reporting rules for similar trading may also exist in different countries or markets.

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