What are the legal restrictions on insider trading?

In North Carolina, insider trading is prohibited by law. Insider trading refers to buying or selling securities (stocks, bonds, options, futures, etc.) based on confidential information that is not made available to the public. Insider trading is considered illegal because it provides traders with an unfair advantage over other investors who don’t have access to the same information. The North Carolina Securities Act establishes several rules and regulations that must be followed when trading securities. One of the primary restrictions on insider trading is the prohibition against using non-public information for personal gain. This means that a person cannot buy or sell securities with the intention of taking advantage of information that is not available to the general public. It is also illegal for someone to buy or sell securities on behalf of someone else who may have access to this information. In addition to these restrictions, North Carolina also has insider trading laws that specifically target those who are employed in the financial services industry. Any person who is employed in this industry must abide by special rules and regulations when trading securities. These rules are designed to prevent individuals from using information that they have gathered through their work for personal gain. Insider trading laws are designed to protect the public from financial loss and to provide a level playing field for all investors. Anyone found in violation of these laws can be subject to punishments such as fines, jail time, and removal from their professional positions.

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What are the legal restrictions on insider trading?

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