What is the difference between insider trading and market manipulation?

Insider trading and market manipulation are both white collar crimes that involve deceptive trading involving securities. The main difference between the two is the involvement of a third party. In insider trading, an individual who has inside knowledge of the company, such as an employee or investor, will use that information to their advantage and trade stocks in the company they are affiliated with, without disclosing this information to the public first. In market manipulation, the individual may use fraudulent tactics to influence the stock prices of companies in order to benefit their own trading activity. These fraudulent tactics can include spreading false information about a company’s performance or creating a false impression of demand for a certain stock in order to drive up the price. It is important to note that insider trading is illegal even if the individual does not benefit financially from their activities, whereas market manipulation must have a financial benefit to be considered illegal. In South Dakota, both insider trading and market manipulation are considered very serious offenses and can lead to jail time, fines, and other penalties. The state takes a firm stance on white collar crime in order to protect the integrity and trust between investors and the overall stock market.

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What is the difference between insider trading and market manipulation?

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