Insider trading

Insider trading refers to the buying or selling of a publicly-traded company’s stock by someone who has non-public, material information about that stock. This practice is illegal and unethical as it gives an unfair advantage to insiders over regular investors. Insider trading can severely distort market fairness and undermine investor confidence. Regulatory bodies take stringent actions against individuals and entities engaged in such practices to maintain market integrity. Understanding the implications of insider trading and recognizing the boundaries can help in maintaining ethical standards in trading activities.