Insiders

An insider is a person who has access to confidential information about an organization due to their position or relationship. In corporate and securities contexts, insiders include company directors, officers, employees with access to nonpublic information, and significant shareholders. External professionals such as lawyers, accountants, or consultants may also be considered insiders if they are entrusted with material information.

Insiders have fiduciary or confidentiality duties. Their access to sensitive information gives them potential influence over the company’s affairs and stock price. The term can also apply more broadly to individuals within a private organization who are privy to nonpublic strategic details.

Insider trading refers to buying or selling a public company's securities while possessing material nonpublic information. In many jurisdictions it is illegal or subject to penalties. Corporate insiders must disclose holdings and trades, and may be subject to cooling-off periods or specific reporting requirements. Legal, pre-approved trading plans exist, such as 10b5-1 plans, to regulate trading intent.

Regulators enforce rules to maintain market fairness. Violations can lead to penalties, disgorgement of profits, and criminal charges. Companies implement compliance programs, maintain insider lists, establish trading windows, and provide training to prevent improper use of information.