Inside information is any kind of data pertinent to the inner workings of the corporation that has not yet been revealed to the public. Corporate information that has been relayed via financial statements, press releases, or any generally accessible media would not be considered inside information. Inside information may become available to virtually anyone, including corporate executives, stock brokers, other company employees, and even family members. Individuals who are purview to inside information are known as insiders. Use of inside information has a vast potential for having serious and detrimental effect on the securities and derivatives of a given corporation. Thus, exploiting inside information for material gain may be deemed unlawful. One example of inside information abuse is insider trading. |
