Insider Trading involves company insiders, such as key employees, promoters, or directors, buying or selling the company’s stocks or securities and reporting these transactions to the exchange. This practice is legal when properly disclosed, adhering to the SEC's Prohibition of Insider Trading regulations. Trendlyne’s 'Insider Trades' feature tracks these disclosed transactions.



Key terms related to insider trades are:


  • Exercise or Conversion of Derivative Security: When an insider converts options or other derivative securities into stock, it's termed as 'Exercise' or 'Conversion.'

  • Gift of Securities: The transfer of stock without payment between insiders or to charities is labeled as a 'Gift.'

  • Grant, Award, or Other Acquisition of Securities: Receiving stocks through grants or awards from the company is termed as 'Acquisition.'

  • Other Type of Transaction: Any insider transactions not classified under common categories are labeled as 'Other.'

  • Payment of Exercise Price or Tax Liability: Insiders covering exercise prices or taxes by surrendering part of their stock are engaging in a 'Payment' transaction.

  • Purchase of Securities: Insiders buying stocks on the open market or privately is known as a 'Purchase.'

  • Sale of Securities: When insiders sell their stocks on the market or privately, it is considered a 'Sale.'

  • Sale or Transfer of Securities Back to the Company: Insiders returning stock to the company, often in buyback scenarios, is termed as a 'Sale or Transfer.'