Recent Examples of insider trading from the Web
In effect, Ross used pending news of his own dubious investments as an opportunity for insider trading.
In his 2010 civil settlement with the Securities and Exchange Commission over the accusations of insider trading, Mr. Mozilo didn’t admit or deny wrongdoing.
Season 1 tracked the rivalry between hedge fund manger Bobby Axelrod (Damien Lewis) and Chuck Rhoades (Paul Giamatti), the U.S. attorney determined to take him down for insider trading.
Of course, Buffett had plenty of opportunities to buy Microsoft stock without any remote appearance of insider trading.
Stewart was convicted in an insider trading case in 2004.
Stewart was convicted in 2004 of conspiracy, obstruction of justice and making false statements relating to an insider trading investigation.
The reason: If any word about the strength or weakness of the new report leaks out, those in the know could make fortunes off of insider trading.
Stewart was convicted of lying to the FBI during an investigation into her sale of shares to drug company ImClone Systems for possible insider trading.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'insider trading.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of INSIDER TRADING
What It Is
Insider trading refers to the trading of securities by corporate insiders such as managers or executives.
How It Works
Insider trading can be legal or illegal depending on if the information used to base the trade is public.
Individuals who engage in illegal insider trading attempt to benefit from trades based on information about a company not yet made public. For example, an executive of Company XYZ who purchases shares of the company based on a pending merger announcement is engaging in illegal insider trading.
However, once Company XYZ has announced the merger publicly, insiders may legally trade the shares based on the information.
Why It Matters
Some investors follow legal insider trading because they believe insiders have a better insight to the financial health of a company.
Meanwhile, illegal insider trading can lead to fine and even imprisonment for the guilty party.
INSIDER TRADING Defined for English Language Learners
Definition of insider trading for English Language Learners
finance : the illegal activity of buying and selling a company's stocks while using secret information from a person who works for the company
Learn More about insider trading
Britannica.com: Encyclopedia article about insider trading
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