Market Abuse

Insider Trading

Definition

What is Insider Trading?

Trading securities while possessing material non-public information, where prohibited by law.

Example in practice

An executive buys shares before unpublished takeover news.

Keep learning

A trade or series of trades creating the appearance of activity without a genuine change in beneficial ownership.

Placing orders without genuine intent to execute in order to mislead other market participants.

A form of manipulation involving multiple deceptive orders at different price levels.

Income generated from selling goods or services before expenses are deducted.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.