Constructive Insider(redirected from Constructive Insiders)
A person who is not considered an insider of a publicly-traded company but may still have access to nonpublic information that is expected to remain nonpublic. For example, a lawyer working for a firm retained by a publicly-traded company may be a constructive insider. Constructive insiders are expected to abide by the same rules as actual corporate insiders; that is, they may not reveal or profit from nonpublic information. The term was first used in the U.S. Supreme Court case Dirks vs. SEC.