Material Nonpublic Information
Information that is BOTH material (a reasonable investor would consider it important in a buy/sell decision because it would or could move the price) AND nonpublic (not yet broadly disseminated to the market). Trading or tipping others on it — in either direction, regardless of your job title — is illegal insider trading when it was obtained through someone's breach of a duty of confidentiality. The lawful counterpart is the mosaic theory: assembling public and non-confidential pieces into a sharper conclusion is legitimate research even though it produces a real edge.
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Related terms
Business · CEO Pay Ratio · Conflict of Interest · Explanation by Omission · Fair Dealing · Form 4
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