Insider trading involves the use of information not available to the general public to make profits from trading in a company's stock.

Question

Quizplus · Accepted Answer

Insider trading is a form of securities fraud where someone with access to privileged information about a company's financials, operations or news, uses said information to buy or sell securities in the relevant company. This action is illegal as it gives the insider an unfair advantage and undermines the fundamental principles of market fairness and transparency.

Insider Trading Involves the Use of Information Not Available to the General