What is the difference between insider trading and market manipulation?

Insider trading and market manipulation are two different white collar crimes that are both regulated under Kansas law. Insider trading is a crime whereby someone with access to non-public, confidential information uses that information to make a profit or avoid a loss in the stock market. Market manipulation is the illegal act of artificially manipulating the market to benefit a person or business. In the case of insider trading, an individual misuses sensitive, confidential information to buy or sell securities in a manner that benefits the insider at the expense of other investors. The benefit to the insider is usually financial, such as a rise in the price of a stock or a quick sale for a higher price. Insider trading is prohibited by the Securities and Exchange Commission and is punishable by both criminal and civil penalties. Market manipulation, on the other hand, is the act of artificially manipulating the price of a security, usually to the benefit of the manipulator. This can be accomplished by spreading false information about the security, withholding important information, or other forms of deception. Market manipulation is also punishable by both criminal and civil penalties, though the punishments are usually more severe in cases of insider trading. In summary, the difference between insider trading and market manipulation is that insider trading is the illegal use of non-public, confidential information for personal gain, while market manipulation is the deliberate artificial manipulation of the stock market for unlawful profit.

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