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insider

 
Dictionary: in·sid·er   (ĭn-sī'dər) pronunciation
 
n.
  1. An accepted member of a group.
  2. One who has special knowledge or access to confidential information.

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Any person who has knowledge of, or access to, valuable nonpublic information about a corporation.

Investopedia Says:
Examples of an insider include the directors and officers of a company. Stockholders who own more than 10% of equity in a company are also insiders.

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Ownership plays a key role when companies go public. Find out how. IPO Lock-Ups Stop Insider Selling
Find out why the trading activity of owners and executives can be a valuable trade-confirmation tool. Can Insiders Help You Make Better Trades?
Insider tracking can inform your investment strategy, but it requires research and a level head. Find out what to look for. When Insiders Buy, Should Investors Join Them?
Look past analysts' ratings to find winning stocks for your clients. Research Report Red Flags


 

As defined by the Securities Exchange Act of 1934, corporate director, officer, or shareholder with more than 10% of a registered security, who through influence of position obtains knowledge that may be used primarily for unfair personal gain to the detriment of others. The definition has been extended to include relatives and others in a position to capitalize on inside information.

 
Law Encyclopedia: Insider
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This entry contains information applicable to United States law only.

In the context of federal regulation of the purchase and sale of securities, anyone who has knowledge of facts not available to the general public.

Insider information refers to knowledge about the financial status of a company that is obtained before the public obtains it, and which is usually known only by corporate officials or other insiders. The use of insider information in the purchase and sale of stock violates federal securities law.

Insider trading entails the purchase and sale of corporate shares by officers, directors, and stockholders who own more than 10 percent of the stock of a corporation listed on a national exchange (any association that provides facilities for the purchase and sale of securities, such as the New York Stock Exchange). Insider reports detailing such transactions must be submitted monthly to the Securities and Exchange Commission.

 
Wikipedia: Insider
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An insider is a member of any group of people of limited number and generally restricted access. The term is used in the context of secret, privileged, hidden or otherwise esoteric information or knowledge: an insider is a "member of the gang" and as such knows things only people in the gang know.

In our complicated and information-rich world, the concept of insider knowledge is popular and pervasive, as a source of direct and useful guidance. In a given situation, an insider is contrasted with an outside expert: the expert can provide an in-depth theoretical analysis that should lead to a practical opinion, while an insider has firsthand, material knowledge. Insider information may be thought of as more accurate and valuable than expert opinion.

Roles

There are many popular cultural roles ascribed to the insider.

In criminal and social justice, whistle-blowing and leaks are seen as (often heroic) efforts of individual insiders to right wrongs by making secret information public, usually in David and Goliath situations (e.g. by revealing transgressions of governments, large corporations or other powerful organizations). When whistle-blowers are cultivated by outside forces, they are known as informants and informers.

In finance, insider trading on the stock market is widely thought of as a means of rapidly increasing wealth for the privileged few who have access to private business information. This is at times perceived as profiting unfairly at the expense of others. Some forms of insider trading are illegal.

In everyday life, insider knowledge is seen as a source of practical information that is contrary to the standard or official advice, delivered in the form of tips from insiders in a wide range of industries. Industry insiders tell outsiders what really goes on behind the scenes, so that they can take advantage of that knowledge. Related to this is personal insider access, where advantageous info can be gained through "knowing someone" ("I'll find out what really goes on from my brother the cop, or my aunt the judge, or my friend who works in accounting").

In business, tips take the form of insider knowledge used by individuals and companies, often away from the view of the public. Jobs and contracts, while openly advertised, in fact go to people based on exchanges of various inside info between key parties. Here, the insider channels can themselves be revealed to a wider audience by other insiders.

A variation of this is the insider-versus-expert authority conflict, where the uncredentaled, "non-expert" insider has a better functional knowledge of a situation, based on "how things really work", than the outside experts, whose expertise is often embodied in a set of rules. For example, there is the farmer who sees folly in new agricultural regulations created by a team of government experts without firsthand farming experience. Or the office staff that keeps a business running smoothly by unofficially ignoring and working around impractical rules devised by management consultants.

In the media, investigative reports, exposés and inside stories are popular genres that usually rely on insiders speaking out, with results ranging from the trivial to the monumentally whistle-blowing.

Definitions

Insider is a fluid term: depending on the usage, it can have strongly positive, negative, or neutral connotations. It is probably safe to say that in all contexts, being an insider implies relatively great, if fleeting, personal power, and therefore engenders some form of respect, and in certain situations, fear.

Active participation is a defining factor: being a witness alone does not make a person an insider. An insider is usually one who is privy to, not simply facts and procedures, but also the day-to-day working relationships and dynamics of people in a group.

Underlying the concept of the insider is a widespread belief, and fact, that in most human social activities, there are two simultaneous, intertwined systems or processes at work: the "way things seem" and the "way they really are". In any one situation, the way things seem may or may not actually be how things work most of the time, but there is always some significant deviation, usually through the clandestine activity of small numbers of individuals within the larger group. Revealing these activities is the role of the insider.

In this way, an insider comes into existence only on or near the act of revealing what they know to an outside party. The majority of people have some area of insider knowledge, but they only become insiders when tapped for that information.

In law, a formal value is assigned to insider knowledge when it is cited to qualify a person as an expert witness. It is also recognized in intelligence and law enforcement, when insiders are deliberately created in the form of deep cover spies and undercover officers, to obtain knowledge not available through surveillance and investigation.

Two broad classes of insider are commonly recognized: those who are principal players in closely-knit groups with specific objectives (e.g. the upper management of a corporation; members of a secret society), and participants in a general area of endeavour, such as a particular industry or profession, a company, or a government department (e.g. a lawyer, an employee of XYZ Inc., a postal worker).

Insiders in the media

A casual survey of popular English-language titles indicates the prevalence and popularity of the insider concept in contemporary media:


 
Translations: Insider
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Dansk (Danish)
n. - person fra inderkredsen, person med førstehåndskendskab, insider

idioms:

  • insider dealing    insiderhandel
  • insider trading    insiderhandel

Nederlands (Dutch)
ingewijde, insider

Français (French)
n. - (gén, Fin) initié

idioms:

  • insider dealing    (Fin) délit d'initié
  • insider trading    (Fin) délit d'initié

Deutsch (German)
n. - Insider, Mitglied, Eingeweihter

idioms:

  • insider dealing    Insiderhandel
  • insider trading    Insiderhandel

Ελληνική (Greek)
n. - δικτυωμένος, καλώς πληροφορημένος, μυημένος

idioms:

  • insider dealing    συναλλαγές σε μετοχές με βάση εμπιστευτικές πληροφορίες
  • insider trading    εξαγορές επιχειρήσεων με βάση εμπιστευτικές πληροφορίες

Italiano (Italian)
iniziato

idioms:

  • insider dealing/trading    compravendita illegale in borsa

Português (Portuguese)
n. - pessoa (f) que está dentro de uma organização, confidente (m) privilegiado

idioms:

  • insider dealing/trading    abuso (m) de informação privilegiada

Русский (Russian)
свой человек

idioms:

  • insider dealing/trading    прибыльная торговля акциями на основании секретных сведений

Español (Spanish)
n. - persona enterada, conocedor, experto, especialista

idioms:

  • insider dealing    tráfico de influencias, abuso de información privilegiada
  • insider trading    tráfico de influencias, abuso de información privilegiada

Svenska (Swedish)
n. - insider, person ur den inre kretsen, person som har tillgång till intern information

中文(简体)(Chinese (Simplified))
内部的人, 知道内情的人, 会员

idioms:

  • insider dealing    尤指股票的非法内部交易, 内幕交易
  • insider trading    内部人员的交易, 证券交易公司同仁利用内幕消息牟利

中文(繁體)(Chinese (Traditional))
n. - 內部的人, 知道內情的人, 會員

idioms:

  • insider dealing    尤指股票的非法內部交易, 內幕交易
  • insider trading    內部人員的交易, 證券交易公司同仁利用內幕消息牟利

한국어 (Korean)
n. - 내부 사람, 소식통

日本語 (Japanese)
n. - 内部の人, 内情に明るい人, 消息通

idioms:

  • insider dealing/trading    内部の取り引き

العربيه (Arabic)
‏(الاسم) المطلع, شخص في مركز يتيح له الإطلاع‏

עברית (Hebrew)
n. - ‮איש פנים, קרוב לצלחת‬


 
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Copyrights:

Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2007. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more
Law Encyclopedia. West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Insider" Read more
Translations. Copyright © 2007, WizCom Technologies Ltd. All rights reserved.  Read more