Insider Trading
InvestingGlossary term
Definition
Trading securities based on material, non-public information. Illegal when done by corporate insiders or those who receive tips. Legal when insiders trade using publicly available information.
Related terms
- StockA share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
- SecuritiesTradable financial assets including stocks, bonds, options, and mutual funds. Regulated by the SEC (Securities and Exchange Commission) to protect investors.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.