Definition of insider trading. Part 2, August 7, 1987 : hearings before the Subcommittee on Securities of the Committee on Banking, Housing, and Urban Affairs, United States Senate, One hundredth Congress, first session, on proposed legislation to clarify the law on insider trading which will provide every professional and firm engaging in the securities business, as well as everyone else, with a single statute to determine what the law is and what their liability is in the area. Prosecution will be easier and punishment will be tougher when the law is clear.