insider

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noun in·sid·er \ (ˌ)in-ˈsī-dər , ˈin-ˌsī- \
Updated on: 26 Jul 2017

Definition of insider

:a person recognized or accepted as a member of a group, category, or organization: such as
a :a person who is in a position of power or has access to confidential information
b :a person (such as an officer or director) who is in a position to have special knowledge of the affairs of or to influence the decisions of a company

Examples of insider in a Sentence

  1. Political insiders say that she is planning to run for president.

  2. The book gives fans an insider's view of Hollywood.

Recent Examples of insider from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'insider.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of insider

1848


Financial Definition of INSIDER

insider

What It Is

An insider is an employee, director or any other person who is privy to confidential, nonpublic information about a company.

How It Works

Given their position, managers and executives within a company are privy to information about a company's operations that is not available to the investing public. The news and details of an upcoming merger or special dividend that have not yet been announced are two examples of insider information. Once information has been made public by the company, it is no longer considered "insider" information.

Why It Matters

Individuals with access to insider information have an unfair advantage in the market. Using this information to base a trade is an illegal practice known as "insider trading."

It is also illegal for a person with insider information to pass it to a third party so that they may use the information to profit.


INSIDER Defined for English Language Learners

insider

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noun

Definition of insider for English Language Learners

  • : a person who belongs to a group or organization and has special knowledge about it


INSIDER Defined for Kids

insider

play
noun in·sid·er \ in-ˈsī-dər \

Definition of insider for Students

:a member of a group or organization who has information about it

Law Dictionary

insider

noun in·sid·er

legal Definition of insider

:a person who is in a position of power or has access to confidential information: as
a :one (as an officer, director, employee, relative, or owner of more than 10% of the corporation's stock) who is in a position to have special knowledge of the affairs of or to influence the decisions of a company
b :an individual (as a relative or an influential party) or entity (as a corporate affiliate) having a close relationship with a debtor such that transactions are not made at arm's length and are subject to closer scrutiny than the transactions of those dealing at arm's length


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