What is the difference between civil fraud and insider trading?

The difference between civil fraud and insider trading is that civil fraud is illegal activity where someone commits a wrongful or deceitful act meant to deprive another person or company of money or assets. Insider trading, on the other hand, is the use of non-public information to buy or sell securities with the intent to make a profit. In Washington, civil fraud is punished through civil penalties. This means that the wrongdoer must pay a sum of money to compensate the injured party for the damages that have been caused. Civil fraud can include intentional misrepresentations as well as omissions of information. It is punishable under both state and federal laws. Insider trading is a form of securities fraud that is prohibited under both state and federal law. It occurs when someone uses confidential information (such as information about a company’s future plans) to buy or sell stocks in that company. It is illegal because it gives certain individuals an unfair advantage over other investors in the market. Insider trading and civil fraud are both illegal activities and can carry serious penalties, including incarceration and heavy fines. However, the penalties for each are quite different. Civil fraud often involves the payment of money in order to compensate the injured party, while insider trading often involves criminal charges, jail time, and hefty fines.

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What is the difference between civil fraud and insider trading?

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