nonpublic information

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Nonpublic information

Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading.

Nonpublic Information

Major knowledge about a publicly-traded company that is not available to the public. Information may apply to its operations, such as its quarterly earnings, or to intangibles, such as an executive's imminent indictment. Nonpublic information almost always impacts a company's stock price, either positively or negatively, when it is made public. Prior to 2001, the use of nonpublic information in investment decisions qualified as illegal insider trading. Since then, even the possession of relevant nonpublic information may cause one to run afoul of SEC rules, even if an investor would have made a particular trade anyway. See also: Rule 10b5-1.

nonpublic information

Information about a company that is unknown to the public. Insiders, including corporate officers and directors, are prohibited from buying or selling their firm's securities on the basis of nonpublic information.
References in periodicals archive ?
Haskell Did Not Utilize Non-Public Information for His Own Advantage, and that it Would Have Been Impossible for Him to Do So
Wells Fargo Advisors, a unit of Well Fargo and Company (NYSE: WFC), has agreed to pay a USD5m penalty to settle Securities and Exchange Commission (SEC) charges that the brokerage failed to maintain adequate controls to prevent an employee from conducting trades on a customer's non-public information.
To address these issues, the Guidelines recommend that, upon the closing of each transaction, the parties that originated and arranged the transaction anticipate in the offering and contractual documents what will happen if material non-public information is received by any of the transaction participants.
We asked that Congress direct the SEC to begin by developing clear criteria for registration, which might include requiring the agencies to demonstrate their procedures and methodologies used in developing ratings, demonstrate that they have developed procedures for protecting non-public information and disclose the qualifications of those tasked with developing ratings.
Written predetermined trading plans adopted according to the terms of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended, permit officers and directors of public companies to buy or sell specified amounts of their company's stock at future dates regardless of any material non-public information they may receive after adopting the plan.
While these notices generally are required to disclose categories of nonaffiliated third parties to whom there is disclosure of non-public information, the GLBA does not require that a practitioner specifically disclose to a client that independent third-party providers are used in performing services to clients (i.
Using these plans, insiders can gradually diversify their investment portfolios, can spread stock trades out over an extended period of time to reduce any market impact and can avoid concerns about whether they had material, non-public information when they sold their stock.
gave material non-public information regarding the failure of a major clinical trial of HGSI to hedge funds which then sold approximately six million shares of HGSI during December 2007 and January 2008, while in possession of that material non-public information.
AirTran said that written predetermined trading plans adopted according to the terms of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended, permit officers and directors of public companies to buy or sell specified amounts of their company's stock at future dates regardless of any material non-public information they may receive after adopting the plan.
Using these plans, insiders can gradually diversify their investment portfolios, can spread stock trades out over an extended period of time to reduce any market impact and, provided they have no material, non-public information when they file their plans, can avoid concerns about whether they have material, non-public information when their stock is later sold.
Once a plan is established, the insider retains no discretion over sales under the plan, and the pre-planned trades can be executed through a broker at later dates without regard to any subsequent material non-public information that the insider may receive.
Rule 10b5-1 allows directors and corporate officials to adopt written, pre-arranged stock trading plans when they do not have material, non-public information.

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