Insider Trading Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Insider Trading, written in plain English, along with examples of how it is used.

What is Insider Trading?

It refers to the buying and selling of the stocks of a company listed in the stock exchange, on the basis of the private and confidential information gathered from the company officials or by gaining employment in the company. Such insiders are aware of the valuation of the stock.