Question:
What is insider trading?
loca
2005-12-17 11:29:02 UTC
What is insider trading?
Two answers:
jb_4563
2005-12-17 11:30:51 UTC
There are two kinds of trading that are referred to as "insider trading" or "inside dealing":



Usually illegal: Trading of a security of a company (e.g., stocks, bonds or stock options) based on material non-public information. The trader may be a corporate "insider" or someone unlawfully obtaining the non-public information (which may constitute a separate offence of spying on trade secrets).



Usually legal: Trading not based on material non-public information by "insiders" of a corporation. (legal)
paul
2005-12-17 11:33:30 UTC
Insider trading is trading of a stock by a person with access to key information about the company. It has a negative connotation, but the term also refers to legal trading by a company insider.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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