Insider trading

Definition

Insider trading involves buying or selling stocks or other securities based on material information that is not available to the public. It is considered illegal when it violates confidentiality agreements or securities laws, giving insiders an unfair advantage in the market.

Related terms

Securities Exchange: A marketplace where securities, such as stocks and bonds, are bought and sold.

Material Information: Any information that could influence an investor's decision to buy or sell securities, including non-public information about company performance or plans.

Market Manipulation: The act of artificially inflating or deflating the price of a security or otherwise influencing the behavior of the market for personal gain