Insider is an individual who is purview to corporate information that has not been made public. Any material information not disclosed to the public is known as insider information. By this virtue, any member of company personnel with access to material non-public information may be deemed an insider. Thus, an example of an insider would be a senior corporate officer, manager, accountant, broker, attorney, or even a family member. The term insider also extends to those who may own ten or more percent of voting shares of the company. An insider is restricted from using insider information to make trades. When an insider engages in trading on insider information, he or she is said to be committing insider trading. Insider trading is considered illicit and may be punishable by law. |
