What is insider trading?

Insider trading is a type of investment fraud that occurs when individuals with knowledge of unpublished information about a company or product take advantage of that knowledge to make a profit. It is illegal in Florida and in most states. Insider trading is considered unethical because it gives those with the knowledge an unfair advantage over other investors and can hurt the entire market. When someone buys or sells a security, they have to observe certain laws to ensure the transaction is ethical. In the case of insider trading, someone uses information that is not available to the public to make investments. It is illegal in Florida for anyone who has access to nonpublic market information to use that information to buy or sell securities and make a profit. This includes company officials, directors, and employees. Additionally, individuals related to someone with access to nonpublic information, such as family members, cannot use that information to make a profit. Insider trading undermines the fairness of the security market and can have a negative effect on the entire industry. As such, people involved in insider trading can be severely penalized and even prosecuted for their crimes.

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What is insider trading?

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