What is Insider trading?
Insider trading: Trading shares using secret information.
Where Insider trading fits
Insider trading is part of Ethics & Governance in Law & Ethics. Ethics and governance keep a company trustworthy: compliance, transparency, conflict-of-interest rules, whistleblower channels and fair treatment of stakeholders.
Practical tip
When in doubt, disclose, ask compliance and pick the honest option.
Related terms
- Corporate governance
- The rules and bodies that direct and control a company.
- Conflict of interest
- When personal gain could bias a business decision.
- Corporate social responsibility
- A company's duty to act well toward society and the planet.
- Risk management
- Finding, ranking and reducing threats to a business.
- Whistleblower
- Someone who reports wrongdoing inside an organization.
- Bribery
- Offering something of value to gain an unfair advantage.
- Data privacy
- Protecting personal information from misuse.
- Compliance
- Following the laws and rules that apply to a business.
Formulas you will use with it
Test yourself
Which term means: “Trading shares using secret information.”?
Risk management · Insider trading · Whistleblower
Answer: Insider trading
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