Insider trading

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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.[1] 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.

Some economists think insider trading should be allowed.[2]

References[change | change source]

  1. "The World Price of Insiders' Trading" (PDF). The World Finance Journal. Retrieved January 1, 2014. 
  2. "Insider Tradings". Library of Economics and Liberty. Retrieved January 1, 2014.