insider investment & finance definition
Someone
who knows about important information before it becomes public. An insider may
be an employee, a company director, someone who works closely with the company,
or someone who owns at least 10 percent of the company. Insiders, including
their friends and family members, are prohibited from trading on inside
information that has not yet been announced to the public.
See insider in Wall Street Words
- A person who, because of his or her position within a firm, has access to proprietary information unavailable to the general public. Although the term obviously includes corporate officers, it also may extend to relatives of these officers or to employees of other firms having a special relationship with the firm in question.
- Officially, an officer, a director, or the owner of 10% or more of a firm's securities. See also Form 3.
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