What is insider trading?

Insider trading is the practice of taking advantage of insider information to buy or sell securities on the stock market. Insider information is when someone has access to information that is not available to the public. Insider trading is illegal in the United States and is a form of market manipulation. In Virginia, insider trading is prohibited by state law. Insider trading can have serious financial repercussions for anyone involved. Under the Virginia Uniform Securities Act, investors who engage in insider trading can be subject to fines, jail time, and other penalties. Insider trading often involves a company’s officers or directors trading their company’s securities. This is known as “tipping” and is illegal because the insider has access to material nonpublic information. Other forms of insider trading include traders using information from others who have access to such information, like third-party consultants or newspaper reporters. Insider trading is a violation of Market Integrity laws and insider trading laws. If you are accused of insider trading, it is important to contact an experienced attorney who can review the evidence and help you understand your rights and obligations.

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