What is insider trading, and is it illegal?
Insider trading can be illegal or legal, depending on the circumstances. Illegal insider trading is trading on the basis of information that isn t available to the general public and that is material to the way investors value a company s stock. Legal insider trading, on the other hand, is the buying and selling of company shares by officers, directors and other key “insiders.” The Securities and Exchange Commission carefully regulates these transactions and requires public disclosure of any planned trades.
