Define: Insider Information

UK Accounting Glossary

Definition: Insider Information


Quick Summary of Insider Information


Information gained by someone inside, or close to, a listed company which could confer a financial advantage if used to buy or sell shares. It is illegal for a person who is in possession of inside information to buy or sell shares on the basis of that information.



What is the dictionary definition of Insider Information?

Dictionary Definition


Insider trading is the trading of a public company’s stock or other securities by individuals with access to nonpublic information about the company. In a number of countries, trading based on insider information is illegal.


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Full Definition of Insider Information


Insider information is any kind of data pertinent to the inner workings of the corporation that has not yet been revealed to the public. Corporate information that has been relayed via financial statements, press releases, or any generally accessible media would not be considered insider information. Insider information may become available to virtually anyone, including corporate executives, stockbrokers, other company employees, and even family members. Individuals who are purview to inside information are known as insiders. Use of insider information has a vast potential for having a serious and detrimental effect on the securities and derivatives of a given corporation. Thus, exploiting insider information for material gain may be deemed unlawful. One example of insider information abuse is insider trading.


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Examples of Insider Information in a sentence


Whilst it’s not proven, it’s still highly possible they were acting on some kind of insider information.
The media played a key role in protecting certain investors by spreading insider information to a wider audience.
The company also accused him of using insider information to help acquire his job at Facebook.


Synonyms For Insider Information


inside info, inside information, insider knowledge, insider trading, privileged information


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/insider-information/
Modern Language Association (MLA):
Insider Information. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 29, 2020 https://payrollheaven.com/define/insider-information/.
Chicago Manual of Style (CMS):
Insider Information. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/insider-information/ (accessed: February 29, 2020).
American Psychological Association (APA):
Insider Information. PayrollHeaven.com. Retrieved February 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/insider-information/

Definition Sources


Definitions for Insider Information are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.