What Is Insider Trading?

What Is Insider Trading?

1 Answer

  1. According to the definition on Wikipedia, “Insider trading is the trading of a public company’s stock or other securities based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.” Broadly speaking, every company has its own private information on its working, planning, financing, marketing etc. This information is although not as private and safe as it might seem. Since employees who work in that organization has most of this information as they are trusted with it. When employees secretively leak this information, or we can say when an insider trade this information for his or her own profit then it is known as insider trading.

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