Traditionally referring to the directors, senior officers and holders of more than 10% of the voting shares of the company, insiders now include anyone who possesses or has access to material, non-public information (inside information), including tippees. This could include, for example, even a junior employee who makes photocopies for a board meeting, or someone who is ‘tipped’ by an insider..

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Fast market

Excessively rapid trading in a specific security that causes a delay in the electronic updating of its last sale and market conditions, particularly in options.

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