What is the difference between insider trading and securities fraud?

Insider trading and securities fraud are two different types of violations that involve the buying and selling of stocks and other investments. Insider trading occurs when an insider, or someone who has access to non-public information, uses that information to buy or sell stock before the general public has access to it. This type of fraud is illegal because it gives the insider an unfair advantage. On the other hand, securities fraud is a more general term that is used to describe any type of fraudulent activity involving the buying and selling of securities. This type of fraud includes activities such as insider trading, market manipulation, and false statements of material fact. In West Virginia, any individuals or businesses who are found to have engaged in insider trading or securities fraud may face fines, imprisonment, or both. In addition, such individuals and businesses may also be subject to a civil lawsuit from the affected parties who lost money as a result of the fraud. In conclusion, although insider trading and securities fraud are both illegal activities, they are actually two different types of financial fraud. Insider trading involves the use of non-public information to buy or sell stock before the general public knows about it. Securities fraud, on the other hand, is a more general term used to describe any type of fraudulent activity involving the buying and selling of securities.

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What is the difference between insider trading and securities fraud?

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