What is insider trading?

Insider trading is a form of white collar crime that is illegal in Kansas. It involves someone who is in a position of trust and responsibility, such as an employee or a person connected with the company, buying or selling stock in the company for their own gain. This is done without disclosing any information to the investing public or the company itself. Insider trading can be done with either positive or negative information, such as knowledge of pending events that could affect the stock price. The purpose of insider trading laws is to protect the investing public from potential losses due to unfair insider information. In Kansas, insider trading can carry both civil and criminal penalties. Civil penalties can include fines of up to three times the profit derived from the insider trading or up to $100,000, whichever is greater. Criminal penalties can include up to five years’ imprisonment or a fine of up to $250,000. In order to prove a violation of insider trading laws in Kansas, the party must be able to show that the individual had access to privileged and confidential information and used it to make a profit.

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What is insider trading?

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