The one who has the information about the company which the general public does not have is considered to be an insider. If the insider trades that is buys or sells the stock based on the material information which he gains secretly from the company, then he is considered to be an insider trader.
Insider trading is banned in the markets. Generally an insider is the person from the top management of the company some times the insider may also be from the person outside the company from whom the company has shared the information for example lawyer, banker etc.
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