Who Is An Insider In Insider Trading? An insider is a director, senior officer, entity, or individual that owns more than 10% of a publicly traded company’s voting shares Who is considered an insider in insider trading? Who is an insider? An “insider” is an officer, director, 10% stockholder and anyone who possesses inside information
Is Insider Information Illegal? Insider trading is deemed to be illegal when the material information is still non-public and this comes with harsh consequences, including both potential fines and jail time. Material nonpublic information is defined as any information that could substantially impact the stock price of that company. Why is insider information bad? The
Are Registered Reps Considered Insiders? RIAs are considered to be acting in a fiduciary capacity, and so held to a higher standard of conduct than registered representatives. This fiduciary standard mandates that an RIA must always unconditionally put the client’s best interests ahead of their own, regardless of all other circumstances. Is a registered representative