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Insiders

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Insiders
Traditionally referring to the directors, senior officers and holders of more than 10% of the voting shares of the company, insiders now include anyone who possesses or has access to material, non-public information (inside information), including tippees. This could include, for example, even a junior employee who makes photocopies for a board meeting, or someone who is ‘tipped’ by an insider..

Insider
A person who has knowledge of or access to restricted or otherwise nonpublic information about a publicly-traded company. Examples include senior management and shareholders with more than a 10% stake in the company. Under most circumstances, it is a crime for an insider to make trades on the special information he/she possesses. See also: Inside information, Insider trading.


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Insider trading is when corporate insiders like directors and executives buy or sell their own companies stock.
He examined insider activity from 1975 to 1995 and found that stocks bought but not sold by insiders outperformed the market by 7.
Informed traders, or "insiders," in turn have an incentive to take advantage of their information before uninformed traders are able to infer what the insiders already know.
 
 
 
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