insider trading

American  

noun

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

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insider trading Cultural  

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.

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

Other Word Forms

Derived Forms

• insider trader
  noun

Etymology

Origin of insider trading

First recorded in 1965–70

Example Sentences

He was involved in a US federal investigation into insider trading that led to the imprisonment of one of his friends, Billy Walters.

From BBC • Jun. 12, 2026

Securities and Exchange Commission in 2016 of getting an insider trading tip and buying $931,000 of stock from sports gambler Billy Walters.

From Los Angeles Times • Jun. 12, 2026

Prediction-market companies are identifying hundreds of cases of suspected insider trading.

From The Wall Street Journal • Jun. 12, 2026

Integrity in sports competitions and prediction market trading has been a hot topic this year as allegations of fixed basketball games and insider trading on military operations have made headlines.

From Barron's • Jun. 11, 2026

Paolo’s father was a real estate mogul who had been indicted for insider trading some months ago.

From "Genuine Fraud" by E. Lockhart