tippee

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Tippee

A person who receives inside information. Unless reported to the authorities, tippees can be held legally liable for illegal inside information, even if the tippee does not use it in trading. This exists to encourage tippees to come forward to eliminate insider trading and increase transparency. See also: Insider trading.

tippee

A person who is given inside information.
References in periodicals archive ?
So, were Newman and Chiasson guilty of violating the rules against insider trading under a theory of tippee liability?
While the landscape of insider trading law continues to evolve, the broad anti-fraud provisions of Section 10(b) and Rule 10b-5 make clear that those who misappropriate material nonpublic information, either as tippers or tippees, will likely be liable for insider trading.
In this case, Rajaratnam violated insider trading laws as a tippee when he obtained material, nonpublic information from corporate insiders and other tippees (52) in violation of their fiduciary duties (which Rajaratnam knew) and traded on that information to his benefit.
Tippers and Tippees do not exchange any personal information, making Ziptip completely confidential, just like cash.
These extend insider liability beyond fiduciaries and their tippees to others, who incur liability if
Fourth, tippees and their insider tippers are also liable under Rule 10b-5.
In England, Switzerland, France, the Low Countries, Japan, and in many other lesser financial centers, laws have been adopted that are intended to penalize at least the grosser kinds of insider trading, that of corporate insiders and their tippees.
As a result of the selective disclosure by defendant Kogan of this adverse, material, non-public information to defendant Putnam and others, defendant Putnam and the others were able to sell enormous amounts of Schering shares before the general public received such information, thereby enabling the tippees to benefit from the receipt of their inside information to the detriment of plaintiff and the Class.
In doing so, the three-judge panel criticized the government for a blitz of Manhattan insider trading prosecutions that resulted in more than 80 convictions since 2008, citing the ''novelty of its recent insider trading prosecutions, which are increasingly targeted at remote tippees many levels removed from corporate insiders.
As a result of the selective disclosure by defendant Kogan of this adverse, material, non-public information to defendant Putnam and others, defendant Putnam and the other defendants were able to sell enormous amounts of Schering shares before the general public received such information, thereby enabling these tippees to benefit from the receipt of their inside information to the detriment of plaintiff and the Class.