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insider trading

/ɪnˌˈsaɪdər ˌtreɪdɪŋ/
IPA guide

When private information is used illegally to make money in the stock market, it's called insider trading. If someone who works at an investment bank sells shares based on information that isn't public yet, it's insider trading.

In the world of finance, an insider is anyone with access to information that isn't available to the general public — like CEOs of companies, government officials, and bank executives. Buying and selling stocks, or trading, on the basis of insider knowledge, is illegal. It's not fair for the president of a corporation to tell her friends that an upcoming merger will boost the value of the company's stock when ordinary investors don't have that same information.

Definitions of insider trading
  1. noun
    buying or selling corporate stock by a corporate officer or other insider on the basis of information that has not been made public and is supposed to remain confidential
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    type of:
    trading
    buying or selling securities or commodities
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