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LSDefine

Simple English definitions for legal terms

insider

Read a random definition: testamentary guardian

A quick definition of insider:

Insider: An insider is someone who knows secret information about a company because of their job or close relationship with the company. Insiders can be employees, directors, officers, lawyers, or accountants. It is illegal for insiders to use this secret information to buy or sell stocks or other securities, which is called insider trading.

A more thorough explanation:

In the world of securities, an insider is someone who has access to information about a company that is not available to the public. This information could be about the company's financial performance, plans for future growth, or other important details that could affect the value of the company's stock.

Insiders can include:

  • Officers and directors of the company
  • Employees of the company
  • Attorneys and accountants who work for the company

It is illegal for insiders to use this nonpublic information to buy or sell stocks or other securities. This is known as insider trading, and it is a crime under the Securities Exchange Act.

For example, imagine that the CEO of a company learns that the company is about to announce a major new product that will revolutionize the industry. If the CEO buys a large amount of the company's stock before the announcement is made public, this would be considered insider trading.

Another example could be an accountant who works for a company and learns that the company's financial results for the quarter are much better than expected. If the accountant buys or sells stock based on this information before it is made public, this would also be considered insider trading.

These examples illustrate how insiders can use their access to nonpublic information to gain an unfair advantage in the stock market, which is why insider trading is illegal.

insertion | insider trading

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20:11
@Mostlylegal: top > else
slimelaw
20:26
@PremiumFrequentCrane: me and you
ronniedoeslaw
23:31
Knicks really choked
ronniedoeslaw
23:32
Is it worth moving to Florida for law school?
I’d only do it for uf
ronniedoeslaw
0:36
That’s a good point
BlueFalcon95
1:16
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BlueFalcon95
1:17
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BlueFalcon95
1:17
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BlueFalcon95
1:19
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what tier is an mba
+ my undergrad and masters dont have a numerical gpa (international), will that hurt/help me? tyyy
an mba isnt even T4, international will hurt you
soft tiers are subjective and made up
@BruceSutter: only when the evaluator is low skill
@FartSmeller5000: the us isnt exactly down with non americans getting the high paying jobs rn
@ronniedoeslaw: if that is your 3
year cover
While tony montanna
NosyBeagle
10:10
i am once again being chronically online by talking to you guys
real
ronniedoeslaw
10:55
Started the show Suits this week & idk why I never watched but it’s so good
11:06
its like the west wing for me in that I like it for awhile then abruptly stop watching it once it all just feels like rehashes of the same stuff
ronniedoeslaw
11:14
Yeah I have a feeling after the first 3-4 seasons they run out of new ideas and it gets over saturated
11:22
I stopped watching by Season 3 lol
11:23
Season 1 - 2.5 were good but after that it got kinda boring ngl
OrangeThing
11:25
1 and 2 are good, 5 is great, skip the rest
AngryMiniCar
11:45
I was in the wrong chat sighh
AngryMiniCar
11:45
Anyone applying upcoming cycle?
11:45
ye
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