In the United States and Germany , for mandatory reporting purposes , corporate insiders are defined as a company's officers , directors and any beneficial owners of more than ten percent 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 to be fraudulent since the insiders are violating the fiduciary duty that they owe to the shareholders.
When the insider buys or sells based upon company owned information , he is violating his obligation to the shareholders. Isider Trading is the most relation with the financial crisises in the global monetary systems .
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