Insider Trading
Financial term in the Investing category
Definition
Trading securities based on material, non-public information. Illegal when done by corporate insiders or those who receive tips. Legal when insiders trade using publicly available information.
Related Terms
Stock
A share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
Securities
Tradable financial assets including stocks, bonds, options, and mutual funds. Regulated by the SEC (Securities and Exchange Commission) to protect investors.
Frequently Asked Questions
What is Insider Trading?
Trading securities based on material, non-public information. Illegal when done by corporate insiders or those who receive tips. Legal when insiders trade using publicly available information.
Why is Insider Trading important in personal finance?
Insider Trading is an important investing concept that helps individuals make better financial decisions. Understanding Insider Trading can improve your financial planning and help you achieve your money goals.
How does Insider Trading relate to Stock?
Insider Trading and Stock are related financial concepts. A share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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