What is insider trading?

Insider trading is a term used to refer to a type of financial transaction that involves someone with access to confidential information about a company taking advantage of that information to make investments for their own personal gain. This type of trading is illegal in the state of Virginia, as it is in most states, since it allows for unfair manipulation of the stock market. For a person to be charged with insider trading, they must have access to confidential information about a company or its stock, and must use that information to buy or sell stock in their own interests. For example, if a person working within a company learns of an upcoming merger and then uses that information to buy up stock in the company, they have engaged in insider trading. In Virginia, insider trading is a Class 1 misdemeanor, and is punishable by up to 12 months in jail and a fine of up to $2,500. If a person is found guilty of insider trading, they may also face civil penalties such as repaying any profits made from the trades, as well as being barred from securities trading for a period of time. Regardless of the penalties, however, the most important thing to remember about insider trading is that it is illegal, and should not be done. Not only is it unethical, but it can have serious consequences if one is caught participating in it.

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What is insider trading?

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