Banking Term: Insider Trading

Find important banking term that is useful in upcoming banking exam.

  • Insider trading is considered as 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, trading based on insider information is illegal.
  • Insider trading is legal once the material information has been made public, at which time the insider has no direct advantage over other investors

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