insider trading

Definition

Trading by insiders; or illegal trading by insiders who trade based on insider information.

Use insider trading in a sentence

I did not like insider trading because most of it was deceitful and ended up not working out for both trading parties.

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Insider trading occurs when people who have inside knowledge trade stocks to profit or prevent loss, which is an illegal activity.

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Martha Stewart was accused of insider trading because she allegedly traded stocks based on special knowledge that she gained from those who work in the market.

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Insider Trading sanctions Act of 1984 coercive incentive