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What is Insider Trading?

Insider Trading The illegal practice of trading a public company’s securities based on material, non-public information, strictly prohibited and monitored by securities regulators worldwide.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Insider Trading” Used in Practice?

Regulators such as the SEC and ESMA impose severe penalties for insider trading, including fines and imprisonment for violators.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Insider Trading?

The illegal practice of trading a public company’s securities based on material, non-public information, strictly prohibited and monitored by securities regulators worldwide.

Where can I learn this term for free?

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