What is the difference between insider trading and market manipulation?

The difference between insider trading and market manipulation is one of intent. Insider trading is when someone with special access to inside information uses the knowledge for their own financial benefit. An example would be an employee of a company who has knowledge of new product or financial information before the public does, trades on the stock market based on that information, and profits from it. Insider trading is illegal and punishable by fines and prison time. Market manipulation, on the other hand, is more of a coordinated effort to manipulate the stock market. This effort typically involves planting false information or making trades with the intent of artificially inflating or deflating a stock price. This kind of activity is illegal in California and punishable by substantial fines and potential prison sentences. The key difference between insider trading and market manipulation is intent. Insider trading is the illegal act of capitalizing on privileged information for personal gain, while market manipulation is the act of manipulating the stock market to achieve a certain outcome. Both are punishable under white collar crimes law in California and can result in hefty fines and even time in prison.

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What is the difference between insider trading and market manipulation?

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