Recent News of Insider Trading

Legal insider trading happens in the stock market on a weekly basis. The question of legality stems from the SEC's attempt to maintain a fair marketplace.

About Insider Trading

Insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security

Material Nonpublic Information

Material nonpublic information is any information that could substantially impact an investor's decision to buy or sell the security that has not been made available to the public.

Illegal Insider Trading

Illegal insider trading includes tipping others when you have any sort of material nonpublic information.

Legal Insider Trading

Legal insider trading happens when directors of the company purchase or sell shares, but they disclose their transactions legally.

Concerning Body

The Securities and Exchange Commission (SEBI) has rules to protect investments from the effects of insider trading. It does not matter how the material nonpublic information was received or if the person is employed by the company.

When Is Insider Trading Illegal?

Insider trading is deemed to be illegal when the material information is still non-public and this comes with harsh consequences, including both potential fines and jail time.

When Is Insider Trading Legal?

Legal insider trading happens in the stock market on a weekly basis. The question of legality stems from the SEC's attempt to maintain a fair marketplace.