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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.


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INTRODUCTION For more than thirty years, supporters and critics of insider trading regulation have agreed on one thing--that insiders can beat the market simply by using nonpublic information to decide when not to trade.
The handbook stated that all the company's internal operations as well as business plans, financial projects, and nonpublic information about clients were strictly confidential.
But since the nonpublic information led the partner to sell, others might conclude the information is by definition material and that the sale is unlawful insider trading.
 
 
 
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