What is insider trading?

Insider trading is a form of securities fraud that occurs when someone uses their access to nonpublic information to buy or sell stocks or other securities. In Washington, insider trading is a criminal offense and can lead to civil and criminal penalties. Essentially, insider trading is when someone uses their knowledge of proprietary or confidential information to purchase or sell securities – sometimes before it is publicly available. This information may come from sources such as a company executive, a board member, or an employee of a company. Using this information to influence stock prices is illegal in Washington and can lead to stiff fines and even jail time. Insider trading can damage the integrity of the securities market and give the insider an unfair advantage over other traders. It also can lead to unfair prices for investors and cause losses to individual investors. It is important to be aware of the risks associated with insider trading and to consult with a professional if you feel you may be engaging in such activities. The SEC can also provide additional information on insider trading laws in Washington.

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What is insider trading?

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