INSIDER TRADER Meaning and
Definition
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Insider trading refers to the illegal practice of trading stocks, bonds, or other securities based on material, non-public information that is only available to individuals within a particular company or organization. An insider trader is an individual who engages in this illegal activity.
Insider trading involves the buying or selling of securities based on confidential information that has not yet been disclosed to the public, giving them an unfair advantage over other investors. This confidential information can include financial results, mergers and acquisitions, upcoming corporate announcements, or any other material information that could potentially impact the price of the securities.
Insider trading is considered illegal as it undermines the fairness and integrity of the financial markets, giving insiders an unfair advantage and disadvantaging other investors. Governments and regulatory bodies have established laws and regulations to combat insider trading and protect the interests of the general investing public.
If caught engaging in insider trading, an individual may face severe legal consequences, including criminal charges and fines. In addition to legal repercussions, insider trading also carries significant reputational damage, impacting the individual's professional standing and future career prospects.
Overall, an insider trader is an individual who unlawfully trades securities based on privileged, confidential information not available to the general public, thereby violating securities laws and regulations.
Common Misspellings for INSIDER TRADER
- unsider trader
- jnsider trader
- knsider trader
- onsider trader
- 9nsider trader
- 8nsider trader
- ibsider trader
- imsider trader
- ijsider trader
- ihsider trader
- inaider trader
- inzider trader
- inxider trader
- indider trader
- ineider trader
- inwider trader
- insuder trader
- insjder trader
- inskder trader
- insoder trader
Etymology of INSIDER TRADER
The term "insider trading" originated in the United States in the early 20th century. The word "insider" refers to someone who has internal knowledge or access to confidential information within a company, and "trader" relates to buying or selling securities in financial markets.The word "insider" dates back to the late 16th century and comes from the Middle English "insyder", which means a person inside or within. It is derived from the Latin "inter", meaning between or among. Over time, the term evolved to denote someone with privileged information about a particular situation or organization.The word "trade" has its roots in the Middle English "traden", which meant to tread or travel back and forth. It has Germanic origins and is related to the Old English word "trādrian". The term gradually developed to encompass the act of engaging in commerce or carrying out transactions involving goods or services.
