Insider Trading Data
Insider trading refers to the buying or selling of a publicly-traded company’s stock by someone who has non-public, material information about that stock.
This information could include knowledge about significant developments within the company, such as upcoming earnings announcements, mergers, or acquisitions, that could potentially impact the stock price.
Insider trading is illegal because it gives those with privileged information an unfair advantage over other investors, as they can profit or avoid losses based on information not available to the general public.
When insider trading occurs, it undermines market fairness and integrity, erodes investor confidence, and can lead to market manipulation.
For investors, it means that the playing field is not level, as some participants have access to information that others do not, resulting in an uneven and potentially unjust marketplace. As a result, regulatory bodies such as the Securities and Exchange Commission (SEC) closely monitor and enforce laws against insider trading to protect investors and maintain market integrity.