[Podcast Episode] What is Insider Stock Trading?
Illegal insider trading is defined as trading securities with significant, secret information, providing an unfair advantage. This involves material non-public information (MNPI) and a breach of duty or trust.
Examples range from corporate executives trading before bad news to tippees acting on confidential tips.
The SEC and DOJ are the primary agencies that detect and prosecute insider trading through market surveillance, data analysis, and tips, with potential severe penalties including fines and imprisonment.
While legal insider trading exists with proper reporting and pre-planned…
The skinny
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