What is insider trading?
Insider trading refers to the buying or selling of a publicly-traded company's stock based on non-public, material information.
Why is insider trading illegal?
It's illegal because it violates the principle of transparency in the markets, giving an unfair advantage to insiders.
What are the consequences of insider trading?
Consequences can include hefty fines, imprisonment, and a loss of reputation for individuals and companies involved.
How can one report insider trading?
You can report insider trading to the Securities and Exchange Commission (SEC) through their online tips portal.
Are there any legal forms of insider trading?
Yes, legal insider trading occurs when corporate insiders buy or sell stock in their own companies, provided they report their trades.
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