Cher Bourg Stocks

Insider Trading

Insider trading refers to the buying or selling of publicly-traded securities based on non-public, material information about the company. This practice often involves individuals such as executives, employees, or board members who have access to confidential information that can influence a company’s stock price. Insider trading can give an unfair advantage to those with insider knowledge, undermining investor confidence in the fairness and integrity of the securities markets.

Legally, insider trading is permissible when trades are made based on public information. However, trading based on non-public information is considered illegal in many jurisdictions, as it is viewed as a breach of fiduciary duty and unethical behavior. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, monitor and enforce laws against illegal insider trading to maintain equitable capital markets. Violations can lead to severe penalties, including fines and imprisonment.