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insider-trading

UK[ɪnˈsaɪ.də ˌtreɪ.dɪŋ]US[ɪnˈsaɪ.dɚ ˌtreɪ.dɪŋ]
n

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Morpheme Breakdown

insider
trading
insider

inside person

trading

act of buying/selling

Etymology

The compound noun "insider-trading" is a modern legal and financial term constructed from two established English words. "Insider" originates from the concept of being on the 'inside' of an organization, with its roots in Old English spatial terms. "Trading" derives from Germanic roots related to a commercial 'track' or 'course' of business. The term's logic is transparent: it literally denotes the 'buying and selling' conducted by an 'internal member,' which in the 20th century became specifically defined and prohibited as the unethical or illegal use of non-public, privileged information for securities transactions, creating an unfair advantage over the general public.

Analysis

Structure: insider (inside person) + trading (act of buying/selling) - insider: From English 'inside' (Middle English, from Old English innan "within, inside" + sīde "side") + agentive suffix '-er' (Old English -ere). Functions as a noun meaning "a person within a group or organization." - trading: From English verb 'trade' (Middle English, from Middle Low German trade "track, course") + nominalizing suffix '-ing' (Old English -ung, -ing). Functions as a noun meaning "the action of buying and selling goods or services."

Examples

The executive was convicted of insider-trading after profiting from confidential merger details.

Strict laws are in place to prevent insider-trading and ensure market fairness.

The scandal involved widespread insider-trading among the firm's senior analysts.

insider-trading – Meaning, Etymology & Word Origin | OpenEtymology