Definition
Insider Trading Definition
Insider trading is the illegal practice of buying or selling securities, such as stocks, bonds, or options, using non-public information that has not been made available to the public. It is illegal because it can give those with access to inside information an unfair advantage over other investors who don't have access to this information. Insider trading can be done by corporate insiders, such as officers, directors, and employees, or by external investors, such as family members, friends, and corporate takeover specialists. Those who engage in insider trading can be subject to sanctions, including fines and jail time. Insider trading is a serious crime that can have a negative impact on the stock market and investors' confidence in the market.
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