Category: Goodies

What Is Insider Trading

Insider trading is defined as trading of any financial securities like bonds, stocks and options of a public company by an insider. An insider may be a person who has access to company’s non-public information or owns stock more than 10% of firm’s equity.

This practice isn’t recognised as legal in most of the countries as it is an unfair method due to the fact that other investors are unable to make use of the non-public information giving them a tremendous advantage over other traders.

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