Question

What do you mean by insider trading? Explain with example.

Answer 1

Answer:

Explanation:

Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.

Eg: A CEO of a corporation buys 1,000 shares of stock in the corporation. The trade is reported to the Securities and Exchange Commission. ... The trade is reported to the Securities and Exchange Commission.