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 ?
The complaint also contends that the individual defendants engaged in substantial and suspicious insider trading while in possession of material, non-public knowledge about these matters.
The complaint also contends that one or more of the defendants engaged in substantial and suspicious insider trading while in possession of material, non-public knowledge of the alleged backdating scheme.

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