insider trading


Definition of insider trading

: 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 He was accused of insider trading by authorities and in 2012 pleaded guilty to wire fraud on behalf of his hedge fund, Tiger Asia Management. Fortune, "The trade of the year? Morgan Stanley managed to unload billions in toxic Archegos holdings in nick of time," 7 Apr. 2021 Archegos was founded by Bill Hwang, best known for an insider trading scandal at former hedge fund Tiger Asia Management. Matt Egan, CNN, "Hedge fund meltdown: Elizabeth Warren suggests regulators should've seen it coming," 30 Mar. 2021 It’s been implicated in abetting corruption in South Africa and Mongolia, accused of enabling oppression in Saudi Arabia, and suffered the embarrassment of a partner’s arrest as part of a massive insider trading scandal. Oliver Staley, Quartz, "McKinsey faces its moment of reckoning," 27 Mar. 2021 Such rules were developed to help prevent insider trading by members of Congress. The Salt Lake Tribune, "Blake Moore takes a pay cut to join Congress while Burgess Owens nearly triples his wages," 1 Jan. 2021 The basis for the CFTC’s enforcement action against Vitol is an antimanipulation rule that was introduced as a result of the 2010 Dodd-Frank Act and modeled after a securities law prohibiting insider trading. Dylan Tokar, WSJ, "Derivatives Regulator Uses Dodd-Frank Rule to Target Foreign Bribery," 22 Dec. 2020 Though she was investigated for insider trading, Stewart was found guilty of other related charges. New York Times, "Corrections: March 14, 2020," 14 Mar. 2021 Indeed, both senators from Georgia were investigated for potential insider trading, with the investigations being dropped by the Senate Ethics Committee. Francis Cong, Fortune, "Sen. David Perdue’s suspicious stock success shows why members of Congress shouldn’t be allowed to trade individual stocks," 17 Dec. 2020 But in 2012, the SEC was investigating insider trading allegations that eventually snared eight of S.A.C’s employees. Dom Amore,, "‘In a candy store with carte blanche,’ Connecticut billionaire Steve Cohen sparks new optimism as owner of the Mets," 27 Dec. 2020

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.

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First Known Use of insider trading

1966, in the meaning defined above

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Time Traveler for insider trading

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The first known use of insider trading was in 1966

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Statistics for insider trading

Last Updated

11 Apr 2021

Cite this Entry

“Insider trading.” Dictionary, Merriam-Webster, Accessed 16 Apr. 2021.

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More Definitions for insider trading

insider trading


English Language Learners Definition of insider trading

finance : the illegal activity of buying and selling a company's stocks while using secret information from a person who works for the company

insider trading


Legal Definition of insider trading

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

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