insider trading

noun

: the illegal use of information available only to insiders in order to make a profit in financial trading

Examples of insider trading in a Sentence

Recent Examples on the Web
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Lawmakers have introduced a flurry of bills this year to address insider trading on prediction markets and seek to restrict event contracts on topics including sports, elections and acts of war. Davis Giangiulio,justin Papp, CNBC, 21 July 2026 Over the past couple of years, plenty of concern has been expressed about how prediction markets may enable—and create the incentive for—insider trading. Kaitlyn Tiffany, The Atlantic, 20 July 2026 The company has been accused of several California Coastal Act violations and is facing state environmental law criminal charges, a congressional investigation of the company’s practices and lawsuits related to claims of insider trading. Grace Toohey, Los Angeles Times, 20 July 2026 In March, California Governor Gavin Newsom strengthened a ban on insider trading by state officials on prediction market platforms. Laura Paddison, CNN Money, 17 July 2026 See All Example Sentences for insider trading

Word History

First Known Use

1966, in the meaning defined above

Time Traveler
The first known use of insider trading was in 1966

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Cite this Entry

“Insider trading.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/insider%20trading. Accessed 31 Jul. 2026.

Legal Definition

insider trading

noun
: the illegal use of especially material inside information for profit in financial trading see also tippee

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