It is important to note that trading in the stock of the firm by company officials is called insider trading, but as long as it is reported, it is not illegal.

Question

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Insider trading by company officials is illegal if it involves the use of non-public, material information. However, if it is reported to the Securities and Exchange Commission (SEC) and done in accordance with the law, insider trading can be legal. Therefore, insider trading is not always illegal, but it must be disclosed and done in compliance with the law.

It Is Important to Note That Trading in the Stock