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LSDefine

Simple English definitions for legal terms

insider trading

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A quick definition of insider trading:

Insider trading is when someone buys or sells a company's stocks using secret information that is not available to the public. This is not allowed because it is unfair to other people who want to buy or sell the stocks. People who work for the company, like bosses or important employees, are not allowed to use this secret information to make money for themselves. If they do, they can get in trouble with the law. The government watches for this kind of behavior and can punish people who break the rules.

A more thorough explanation:

Insider trading is when someone buys or sells a company's stocks using information that is not available to the public. This information is usually confidential or material non-public information that only people who work for the company or have access to the company's secrets know about. This is considered a breach of the individual's fiduciary duty.

For example, if a CEO of a company knows that the company is going to announce a big merger, they might buy a lot of the company's stock before the announcement is made. This is illegal because they are using information that is not available to the public to make a profit.

Insiders who "tip" their friends about material non-public information may also be liable for insider trading. For example, if a friend of the CEO knows about the merger and buys stock based on that information, they are also breaking the law.

The Securities and Exchange Commission (SEC) requires companies to report trading by corporate officers, directors, or other company members with significant access to privileged information. If someone is caught insider trading, they can face criminal charges and fines.

insider | insolvency

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i just witnessed a murder
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i need to log out forever
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1a2b3c4d26z
14:35
he cant keep getting away with this
That has me laughing
misoissocute
14:36
you got me fr lol
Most of the time people use abbreviations that I also do not know but I haven;t gotten trapped in the Your Mom joke :3
HopefullyInLawSchool
14:37
watch yourself
babycat
14:38
got em so bad they went private is crazy
Ha ha ha
misoissocute
14:38
I went private bcz I had to show the chat to my friends and I didnt want them to look at my stats lol
misoissocute
14:39
but yeah nw it made me chuckle
GodsPlanUltimately
14:39
I had to hold my smile laugh back in class right now.
WorthlessAttractiveZombie
14:39
somebody needs to change their name to YMisYoMama so nobody falls for it again
babycat
14:39
why would you ruin the fun like that
babycat
14:39
typical yalie
HopefullyInLawSchool
14:39
I will strike again, I will come up with new ways
WorthlessAttractiveZombie
14:40
omg she remembers me
GodsPlanUltimately
14:40
You are all adorable. A nice break over the cycle stress.
HopefullyInLawSchool
14:40
Whenever I see USD I think its San Diego and its South Dakota ):
BelowMedians
14:40
I applied UVA ED and. It’s been 20 days and haven’t heard anything. Am I cooked?
JumpySubsequentDolphin
14:40
ANITHER YOUR MOM JOKE
JumpySubsequentDolphin
14:41
hopefully you’ve got superpowers at this point
GoodLuckEveryone
14:42
has anyone ed interviewed with ucla?
HopefullyInLawSchool
14:43
I did!
HopefullyInLawSchool
14:44
@GoodLuckEveryone They asked about why UCLA, why law, the typical stuff, I spoke about Joe alittle, nothing to crazy tho (:
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