<P> In the United States , Canada , Australia and Germany , for mandatory reporting purposes , corporate insiders are defined as a company 's officers , directors and any beneficial owners of more than 10 % of a class of the company 's equity securities . Trades made by these types of insiders in the company 's own stock , based on material non-public information , are considered fraudulent since the insiders are violating the fiduciary duty that they owe to the shareholders . The corporate insider , simply by accepting employment , has undertaken a legal obligation to the shareholders to put the shareholders ' interests before their own , in matters related to the corporation . When insiders buy or sell based upon company - owned information , they are violating their obligation to the shareholders . </P>
<P> In the United States , Canada , Australia and Germany , for mandatory reporting purposes , corporate insiders are defined as a company 's officers , directors and any beneficial owners of more than 10 % of a class of the company 's equity securities . Trades made by these types of insiders in the company 's own stock , based on material non-public information , are considered fraudulent since the insiders are violating the fiduciary duty that they owe to the shareholders . The corporate insider , simply by accepting employment , has undertaken a legal obligation to the shareholders to put the shareholders ' interests before their own , in matters related to the corporation . When insiders buy or sell based upon company - owned information , they are violating their obligation to the shareholders . </P>
who is considered an insider in insider trading
who is considered an insider in insider trading
a company 's officers , directors and any beneficial owners of more than 10 % of a class of the company 's equity securities
a company 's officers , directors and any beneficial owners of more than 10 % of a class of the company 's equity securities