Market Abuse
Insider Trading
Definition
What is Insider Trading?
Trading securities while possessing material non-public informationImportant information not available to the public that could affect an investment decision or security price., where prohibited by law.
Example in practice
How This Looks in Practice
An executive buys shares before unpublished takeoverAn acquisition that results in one party gaining control of another company. news.
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Related Terms
Market Abuse
Wash Trade
A trade or series of trades creating the appearance of activity without a genuine change in beneficial ownership.
Market AbuseSpoofing
Placing orders without genuine intent to execute in order to mislead other market participants.
Market AbuseLayering
A form of manipulation involving multiple deceptive orders at different price levels.
Financial StatementsRevenue
Income generated from selling goods or services before expenses are deducted.