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LSDefine

Simple English definitions for legal terms

insider

Read a random definition: quaestio voluntatis

A quick definition of insider:

Insider: An insider is someone who knows secret information about a company because of their job or close relationship with the company. Insiders can be employees, directors, officers, lawyers, or accountants. It is illegal for insiders to use this secret information to buy or sell stocks or other securities, which is called insider trading.

A more thorough explanation:

In the world of securities, an insider is someone who has access to information about a company that is not available to the public. This information could be about the company's financial performance, plans for future growth, or other important details that could affect the value of the company's stock.

Insiders can include:

  • Officers and directors of the company
  • Employees of the company
  • Attorneys and accountants who work for the company

It is illegal for insiders to use this nonpublic information to buy or sell stocks or other securities. This is known as insider trading, and it is a crime under the Securities Exchange Act.

For example, imagine that the CEO of a company learns that the company is about to announce a major new product that will revolutionize the industry. If the CEO buys a large amount of the company's stock before the announcement is made public, this would be considered insider trading.

Another example could be an accountant who works for a company and learns that the company's financial results for the quarter are much better than expected. If the accountant buys or sells stock based on this information before it is made public, this would also be considered insider trading.

These examples illustrate how insiders can use their access to nonpublic information to gain an unfair advantage in the stock market, which is why insider trading is illegal.

insertion | insider trading

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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