The Legal Truth Behind Insider Trading

The stock market today has experts all over the globe sitting back and scratching their heads. Nothing seems to be making a lot of sense, even to some of those who are usually very much in the know.

The stock market has also seen some of its biggest losses in history and while certain individual stocks continue to get beaten and battered, others are rising like crazy.

Fortunately, there’s one group of investors that has historically and consistently proven to generate far better returns than well-informed investors. They are known as corporate insiders.

Insiders can be any executive or director of a publicly-traded business that has access to information that may alter a company’s stock price. While a lot of people believe that insider trading is illegal, this isn’t always true.

Insiders can legally trade their company’s shares provided they do so according to strict regulations outlined and enforced by the SEC. They are limited to specific trading windows and have to file their trades with the SEC quickly.

 

 

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