Insider trading

From Financial Literacy Wiki

Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by corporate insiders such as officers, key employees, directors, or significant shareholders of more than five percent of the firm's shares. Insider trading may be perfectly legal, but the term is frequently used to refer to a practice, that is illegal in many jurisdictions, in which an insider trades based on information that are not released to the public yet, obtained during the insider tour of duty at the corporation, or otherwise misappropriated.