Quick Definition

Insider trading involves the buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Examples

• 1A CEO buys shares in their company before announcing a major acquisition.
• 2An employee sells shares based on confidential information that the company will soon report lower than expected earnings.
• 3A government official trades stocks based on non-public information about upcoming regulatory changes that will affect certain industries.

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