- A fact that is not publicly known about the plans or conditions of a publicly traded company that could offer a financial advantage to someone working closely with the company in the buying or selling of that organization’s stock.
One doesn’t need to be a company executive to have inside information that could be advantageous in stock trading. For example, an employee who works in research and development would certainly have inside information about an exciting new product the company will soon be launching. His insider information would preclude him from buying or selling company stock in response to the news – at least until after the information became public. His family and friends would also be wise to avoid buying or selling company stock based on insider information leaked by the research and development employee.
- Sociology: Information known only to members of secret societies, fraternities and sororities about the inner workings of the group, rituals and other intriguing tidbits. The information may not actually be interesting, but the fact that it is a secret makes it tantalizing.
John works in IT for a large company. In the course of fixing computers and troubleshooting email issues, he is privy to insider information about the company that could benefit him financially in the stock market. He chooses not to act on it because doing so could jeopardize his job and his freedom.