What defines an insider in insider dealing?

The definition of an insider in the context of insider dealing specifically refers to an individual who has access to non-public information about a company due to their position within or relationship to that company. This typically involves employees, officers, directors, or other entities who have privileged access to sensitive information that has not been disclosed to the general public.

An employee or officer with non-public information possesses the potential to use that information for trading decisions, thereby gaining an unfair advantage in the marketplace. This concept is fundamental in maintaining fair and transparent trading practices, as it seeks to prevent exploitation of confidential information that can manipulate market conditions and prices.

Other options, such as anyone on a company's email list, a former employee, or investors with a subscription to company reports, do not accurately capture the essence of insider dealing. These groups may have access to certain information, but not necessarily non-public information that would put them in a position to exploit or act on that information in a way that constitutes insider trading. For example, information shared via email lists or accessible through subscription services may already be public or only peripheral, lacking the element of non-public confidentiality that characterizes true insider knowledge.