Only outsiders who would ordinarily be deemed fiduciaries of the corporations in whose stock they trade can be liable for insider trading.

Question

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Insider trading refers to the buying or selling of stock based on material non-public information. Both insiders (i.e., corporate officers, directors, and employees) and outsiders (i.e., individuals who do not work for the company but have access to insider information) can be liable for insider trading. It is not limited to only outsiders who would ordinarily be deemed fiduciaries of the corporations in whose stock they trade.

Only Outsiders Who Would Ordinarily Be Deemed Fiduciaries of the Corporations