Trading in securities of a company by one who has special information not available to the general public or stockholders concerning the company because of his or her position with the company or with a person who holds such a position. Many serious violations of insider trading rules during the 1980s discredited major investment houses and traders.
The SEC requires that officers, directors, and stockholders owning more than 10% of a corporation whose securities are listed on a national securities exchange must file monthly reports with the commission.
A Year of Insider Trades. Staff of The Insider's Chronicle, 1984.
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