An insider is someone who is a recognized or accepted member of a particular group, organization, or society. This person has access to some level of private information or knowledge that outsiders wouldn’t normally have, which could regard potential illegal activities.

In a financial or legal context, an insider is someone who has access to confidential material non-public information (MNPI) about a company or organization due to their position or close relationship. MNPI is important information that is not yet publicly known, but could significantly affect the price of a company’s stock or the outcome of a business deal.

Examples:

• Company executives and directors have access to a wealth of confidential information about the company’s financial health, future plans, and upcoming announcements.
• Contractors, auditors, and accountants working for a company might be privy to sensitive information during the course of their work.
• Major shareholders who own a significant portion of a company’s stock could be considered insiders.

Insiders and Whistleblowing

Insiders who witness potential wrongdoing, such as fraud, waste, abuse of power, or safety violations can become whistleblowers when they decide to report their concerns or information externally to the proper regulators and authorities, granting them protection and award eligibility.