Exploring Insider Trading Ethics - Paperback

by Xian Yao (Author)

Insider trading refers to the trading of a public company's stock by "insiders", who may have access to non-public information about the company. The term of "insider trading" can sometimes be confusing because many people associate it with illegal conduct only. In fact, insider trading

can either be legal or illegal depending on the nature of the non-public information. Generally speaking, trading by corporate insiders (such as managers, directors and beneficial owners) is legal in most countries as long as it is not based on material non-public information. However, if corporate insiders or any other investors (known as de-facto insiders)trade stocks based on material inside information, their trading will be considered illegal