What is insider trading?

Insider trading is a type of white collar crime which involves buying or selling of stocks, securities, or other investments using information that is not available to the public. In South Carolina, insider trading is illegal and considered a federal crime. Insider trading occurs when someone with access to non-public, sensitive information uses it to make profitable decisions or trades with regards to their investments. This type of crime is especially serious because it violates the Securities Exchange Act of 1934. Individuals who are found to have committed insider trading will face criminal charges as well as fines and penalties. For example, a company executive who knows their company is about to be sold and uses this information to buy or sell stock is guilty of insider trading. The executive is using information that is not available to all investors which gives them an unfair advantage. Insider trading is an illegal, unethical, and dangerous type of white collar crime. It gives certain people an unfair advantage when it comes to investing and can be incredibly damaging to a company or investor. Anyone found guilty of insider trading in South Carolina can face serious penalties.

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What is insider trading?

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