What is Insider Information?
Insider information refers to confidential information about a company that has not been publicly disclosed.
How Does Insider Information Work?
Given their position, managers and executives within a company are privy to information about a company's operations that is not available to the investing public. The news and details of an upcoming merger or special dividend that have not yet been announced are two examples of insider information. Once information has been made public by the company, it is no longer considered "insider" information.
Why Does Insider Information Matter?
It is also illegal for a person with insider information to pass it to a third party so that they may use the information to profit.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Saving money? That’s amazing, but you might be wondering what’s the best account to store your savings. Below we break down your options by looking at money market accounts vs savings accounts so...Read More →
No, it's not a get-rich-quick scheme nor is it a confusing trick. I call it the "apple tree" ...Read More →