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insider trading

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.01 sec.
insider trading, stock market transactions made with knowledge of nonpublic information about corporate activity. In the United States, it has been illegal since 1934. The Securities and Exchange Commission Securities and Exchange Commission (SEC), agency of the U.S. government created by the Securities Exchange Act of 1934 and charged with protecting the interests of the public and investors in connection with the public issuance and sale of corporate securities.
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 regards it as unfair to investors who are not privy to such information. Several insider trading scandals shook Wall Street in the mid-1980s.

insider trading

Illegal use of insider information for profit in financial trading. Since 1934, the Securities and Exchange Commission has prohibited trading while in possession of material nonpublic information. See also arbitrage, Michael R. Milken.



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Law enforcement officials in New York announced charges against 14 people in a widening probe into the largest ever alleged hedge-fund insider trading scheme on Wall Street.
Law enforcement officials in New York announced charges against 14 people in a widening probe into the largest ever alleged hedge-fund insider trading scheme on Wall Street.
Insider trading is the devious act of taking advantage of information not yet known to the public and converting that knowledge into profitable stock transactions.
 
 
 
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