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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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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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.
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