In this video, you’ll learn about insider trading. #insidertrading #stockmarket #wallstreetmojo #sec #illegalactivity Chapters: 00:00 – Introduction 00:42 – What is insider trading? 01:49 – Insider trading punishments 02:29 – Real-world insider trading cases 03:28 – Legal vs illegal insider trading 04:32 – Conclusion What is insider trading? Insider trading is when people have access to price-sensitive non-public information and use it to their advantage by trading in the stock market to make a profit before it is announced to the general public. That’s why, to prevent people from using information to their advantage that is not yet made available to the general public, rule 10b-5 was introduced in the Securities Exchange Act of 1943, and in 2021, the Insider Trading Prohibition Act was also passed. (Explained in detail in the video) Insider trading punishments Any person guilty of insider trading may be penalized a fine of up to $5 …
