Is Insider Trading Illegal?

Is Insider Trading Illegal?
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  1. Insider trading is guilty of crime, especially if the information traded is sensitive and extremely private. It is illegal in almost all the countries and special rules and regulations are passed by various companies so as to set that what according to them will be qualified as insider trading. Although trading by specific insiders, such as employees, is generally permitted as long as it does not rely on material information which is not in the public domain. Also many jurisdictions require that such trading be reported so that the transactions can be monitored. In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade.

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