SEC and Regulatory Filings
Insider Trading
Trading based on important nonpublic information, or sometimes more broadly, insider share transactions reported to the SEC.
Also called: insider transactions
What it means
In legal and regulatory discussions, insider trading usually means buying or selling securities based on material nonpublic information, which can be illegal. In everyday investing talk, people also use the term loosely to describe reported trades by company insiders, even when those trades are legal and disclosed.
Why it matters
Users need to distinguish between legal insider ownership reporting and illegal trading based on secret information.