Answer: Buying or selling of a publicly traded company's stock by someone who has non-public information about that stock.
Notes:
- Insider trading is the malpractice of selling or buying securities (equity/bonds) by the insiders of a company using unpublished price-sensitive information (UPSI) that can affect the stock price that has not been disclosed yet. The SEBI defines an ‘insider’ as someone who has access to price-sensitive information about a particular company's shares or securities and who has been associated with the company during the 6 months preceding the insider trade.
- Frontrunning is a practice of dealing in securities on advance information of an upcoming transaction that could affect its price movement.
- In market manipulation, someone intentionally shares misleading information to influence the price through deceit.
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