Insider trading
trading of a public company's securities by individuals based on material, nonpublic information about the company
Insider trading means the trading of public companies' stocks and other assets on stock markets using secret information. This is done by getting people who have confidential or non-public facts about how much a stock is really worth to tell traders so they can buy or sell to make profit and manipulate that particular
stock.[1] A stock could be worth more or less than the public knows, depending on how well a company is doing in making money, new innovations, sales and demand.
In many countries, insider trading with secret information is against the law.
Some economists think insider trading should be allowed.[2]
References change
- ↑ "The World Price of Insiders' Trading" (PDF). The World Finance Journal. Retrieved January 1, 2014.
- ↑ "Insider Tradings". Library of Economics and Liberty. Retrieved January 1, 2014.
