Tippee Law and Legal Definition
Tippee is a securities law term used to refer to an individual who acquires material non public information from some person in a fiduciary relationship with the company to which that information pertains.
Tippee is an individual who receives an insider's tip on a stock and then trades on it illegally. This term was first used by Harvard Law School Professor Emeritus Louis Loss.
The following is an example of a case law defining the term:
Federal law defines a "tipper" as a person who has possession of material inside information and who makes selective disclosure of such information for trading or other personal purposes. A " tippee" is one who receives such information from a "tipper." [Skinner v. E.F. Hutton & Co., 70 N.C. App. 517 (N.C. Ct. App. 1984)].