Trading of securities on stock exchanges is an important aspect for every economy. This trading fulfills needs of various persons such as investors etc. Sometimes this trading is effected by some wrong practices like insider trading. Insider trading is done to gain unfair advantage.
Insider trading is defined as a malpractice wherein trade of a company’s securities is undertaken by people who by virtue of their work have access to the otherwise non public information commonly known as unpublished price sensitive information(UPSI).
Insider trading is an unfair practice, wherein the other stock holders are at a great disadvantage due to lack of important insider non-public information. However, in certain cases if the information has been made public, in a way that all concerned investors have access to it, that will not be a case of illegal insider trading.
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