Insider trading refers to the buying or selling of securities by individuals who have access to material non-public information about the company. This information may give the insider an advantage over other investors who do not have access to the information.
Insider trading is generally considered to be unethical and is often illegal. In the United States, insider trading is regulated by the Securities and Exchange Commission (SEC) and is prohibited by federal law. The SEC has the authority to bring enforcement actions against individuals and companies that engage in insider trading.
Insider trading can take a variety of forms, including buying or selling shares of a company's stock, trading in options or other securities related to the company, or sharing material non-public information with others who may trade on the information.
It is important to note that individuals who are considered insiders, such as company officers, directors, and large shareholders, are subject to special rules and restrictions on their trading activities. It is also a good idea to consult with a licensed financial advisor or to seek the advice of a financial professional before making any investment decisions.
.png)
0 Comments