What is the difference between civil fraud and insider trading?

The difference between civil fraud and insider trading is that civil fraud involves deception, while insider trading involves trading of securities based on information that is not available to the public. In civil fraud, a person or organization intentionally deceives another party. This can be done by misrepresenting facts, making false statements, or using other fraudulent practices. In South Carolina, civil fraud is a statutory cause of action that can be used to seek damages from the wrongdoer. Insider trading, on the other hand, is when a person uses non-public information (such as insider knowledge, forecasts, etc.) to make trades in stocks, bonds, or other investments. This type of activity is seen as a breach of trust because it gives the person access to information that other traders do not have. Additionally, insider trading can be illegal in certain cases. South Carolina has extensive rules and regulations relating to insider trading to protect investors from fraud and unfair practices. In conclusion, civil fraud is a type of deception that can be prosecuted under South Carolina law, while insider trading is an illegal practice that relies on non-public information to make trades. Both of these activities can result in severe penalties, so it is important to understand the difference between them.

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What is the difference between civil fraud and insider trading?

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