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#2
07-30-2008, 04:54 PM
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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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