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Old 07-30-2008, 02:58 PM
mary1 mary1 is offline
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Join Date: Jun 2008
Posts: 18
Default insider trading question

What exactly is considered insider trading? Can you get convicted?
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Old 07-30-2008, 04:54 PM
trent trent is offline
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Join Date: Jun 2008
Posts: 387

Insider trading is buying or selling a stock based on non-public information that will affect the stock price if/when it's made public.

Many people belive that insider trading can be only from within the company - by employees, or officers of the corporation, however this is not true. Any outsider using non-public information to get unfair trading advantage can be accused of insider trading.

An example of insider trading is a company executive dumping shares on the market, before bad financial results are released to the general public.
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