Cher Bourg Stocks

Insider Trading

Insider trading refers to the buying or selling of stocks or other securities based on non-public, material information about a company. This practice is illegal in many jurisdictions because it violates the principle of transparency and fairness in the financial markets. Insiders, such as company executives, employees, or anyone with privileged access to confidential information, may use their knowledge to gain an unfair advantage over other investors who do not have access to that information. Insider trading can lead to significant legal consequences, including fines and imprisonment, for those involved. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, monitor trading activities to detect and prevent insider trading, thereby aiming to ensure a level playing field for all market participants.