Insider Trading
Insider trader is the action of company employees, directors, board members and officers actively buying and selling stocks in their own company. Corporate insiders must report these trades to the SEC; otherwise, they are in violation of SEC rules. Illegal insider trading is specified when the insider trades company securities based on material … Keep Reading → non-public knowledge of the company’s sales, financial condition, etc. Since the SEC considers insider trading and its implied breach of fiduciary duty a breach in the trust and confidence of the investor community, insiders are frequently tried and severely punished. Providing tips of this non-public information to friends, associates and others is also considered illegal insider trading. Read more about legal and illegal insider trading from Hubbers here.
