What is insider trading?

Insider trading is a type of securities fraud law violation in Virginia that involves trading in securities by individuals who have material, nonpublic (or insider) information about the company. These individuals use the insider information to their advantage, buying or selling securities before the general public is aware of any changes in the company’s stock value, making a profit from the difference. The main difference between legal and illegal insider trading is whether the person trading has the advantage of the inside information. According to the law, when a person trades with knowledge of material, nonpublic information, they are breaking the law. Even if the individual does not receive a direct financial benefit, they are still engaging in illegal activity. In Virginia, insider trading is a serious crime and can have a variety of consequences. Individuals or companies convicted of insider trading may face civil or criminal penalties, including large fines and possible prison time. It is important to be aware of the insider trading laws in the state and the penalties associated with them when engaging in any type of securities trading.

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What is insider trading?

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