Nonpublic Information

Information about a company, either positive or negative, that will have a material effect on the stock price when it is released to the public. Insiders, such as corporate officers and members of the board of directors, are not allowed to trade on material nonpublic information until it has been released to the public, since they would have an unfair advantage over unsuspecting investors. Some examples of important nonpublic information are an imminent takeover announcement, a soon-to-be-released earnings report that is more favorable than most analysts expect, or the sudden resignation of a key corporate official. See also Disclosure; Insider.

Information about a company, either positive or negative, that will have a material effect on the stock price when it is released to the public. Insiders, such as corporate officers and members of the board of directors, are not allowed to trade on material nonpublic information until it has been released to the public. See also Disclosure; Insider.