Introduction to Insider Trading

QUICK DEFINITION: Insider trading is trading based on material non-public information.

While certain legal elements required for insider trading liability have been unsettled recently, the pattern of trading required to flag potential insider trading remains straightforward. If a trader acquires a significant position within a short time prior to a news event that materially benefits that position, the trader may have been trading based on material non-public information and the trade should be flagged for further inquiry.

Reviewing Insider Trading in Surveyor

An example of possible insider trading shown in Surveyor

More on Surveillance Exceptions

Next, learn more about trade concentration.