Insider Trading

Insider trading involves buying or selling shares based on non-public, material information, often obtained through unethical means. This practice is considered illegal as it gives an unfair advantage to individuals with privileged access to confidential data, typically insiders or employees of a publicly traded company. Such information, if disclosed, could significantly impact the stock’s value, making insider trading an unethical and illegal act, as it undermines market fairness and investor trust. Regulations are in place to detect and prevent insider trading to maintain a level playing field in financial markets.