What is the difference between insider trading and market manipulation?

Insider trading and market manipulation are two common types of white collar crimes seen in Virginia and throughout the US. Insider trading occurs when someone with inside knowledge or access to confidential information about a company or security uses that information to buy or sell securities in an illegal and unethical manner. For example, if an employee of a company buys stock in the company’s stock before the company releases good news, they would be participating in insider trading. Market manipulation, on the other hand, is when someone attempts to manipulate a security’s price or volume without actually executing any trades. This could include creating "false" news headlines, rumors, or issuing false or misleading statements. The goal of market manipulation is to manipulate the outcome of a security or market in order to profit from the movement of the price or volume. One of the key differences between insider trading and market manipulation is intent. The intent of insider trading is to take advantage of someone’s insider knowledge for personal gain. The intent of market manipulation is to manipulate the market or security for personal gain. Both activities are illegal and can result in severe penalties if caught.

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What is the difference between insider trading and market manipulation?

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