Insider trading means the trading of public companies' stocks and other assets on stock markets using secret information. This is done by getting people who have confidential or non-public facts about how much a stock is really worth to tell traders so they can buy or sell. A stock could be worth more or less than the public knows, depending on how well a company is doing in making money.
In many countries, insider trading with secret information is against the law and thought to be a bad thing to do.
References[change | change source]
- "The World Price of Insiders' Trading". The World Finance Journal. https://faculty.fuqua.duke.edu/~charvey/Teaching/BA453_2005/BD_The_world.pdf. Retrieved January 1, 2014.
- "Insider Tradings". Library of Economics and Liberty. http://www.econlib.org/library/Enc/InsiderTrading.html. Retrieved January 1, 2014.