Insider Trading


Definition: Insider Trading is the unethical (and often illegal) form of trading where securities transactions are undertaken by people who by virtue of their work have access to certain material information which is otherwise not available to common investors of a listed public company. This material information is termed "insider information". This availability of this information enables the insider trading in that company's stocks and securities.
Key personnel of a company sell out their holdings after discovering that the company will be losing a major government contract in days to come.


More on business ethics: Doughnut Economics, Negotiation Agreement, White Collar Crime.


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