insider trading

noun

1. the illegal buying and selling of securities by persons acting on privileged information.

insider trading

1. The unlawful practice of using information that comes from a source “inside” the business but is not available to the general public to trade on the stock market . This activity is prohibited by law and is policed by the Securities and Exchange Commission .

Notes

In the mid-1980s, several revelations of insider trading rocked Wall Street .

Other Words From

• insider trader noun

Word History and Origins

Origin of insider trading¹

First recorded in 1965–70

Example Sentences

It’s been implicated in abetting corruption in South Africa and Mongolia, accused of enabling oppression in Saudi Arabia, and suffered the embarrassment of a partner’s arrest as part of a massive insider trading scandal.

From Quartz

Although some suspicious trading activities have been widely condemned, the fact that no member of Congress has been prosecuted under the STOCK Act reveals the challenge in proving illegal insider trading by elected politicians.

From Fortune

Indeed, both senators from Georgia were investigated for potential insider trading, with the investigations being dropped by the Senate Ethics Committee.

From Fortune

Earlier this year, the Justice Department investigated him and other lawmakers for possible insider trading.

From ProPublica

The reminders about insider trading issued by Amazon included a video sent to the company’s entire finance division.

From Fortune

On Friday, hedge fund trader Michael Steinberg was sentenced to 3.5 years in jail for his insider-trading conviction.

From The Daily Beast

Meanwhile, in lower Manhattan, former SAC Capital manager Matthew Martoma is on trial for insider trading in drug-company stocks.

From The Daily Beast

This one is also “the largest financial penalty in history for insider trading offenses.”

From The Daily Beast

Cohen and SAC in March agreed to pay a $616 million fine to settle insider-trading charges.

From The Daily Beast

On Monday, SAC agreed to pay a record $1.2 billion to resolve insider-trading charges.

From The Daily Beast