What term describes a person who discloses material nonpublic information to another?

The term that describes a person who discloses material nonpublic information to another is "tipper." In the context of securities law, a tipper is someone who provides a tip—a piece of insider information—to another person, which is often referred to as a tippee. The tipper can be held liable for insider trading if the person they disclose this information to uses it to trade securities, thereby profiting from nonpublic information.

Understanding this dynamic is critical in recognizing the responsibilities and legal implications for individuals who possess material nonpublic information. The relationship between the tipper and the tippee is important in determining liability, particularly in cases of insider trading, where the chain of communication can impact the enforcement of securities laws.