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Illegal insider trading is when non public corporate information has influenced a trade when someone buys or sells. When someone uses this information it allows them to gain an unfair advantage over other investors causing the market to gain or lose money. If insider trading were allowed then people that invested would no longer feel confident to invest. The legal way to gain an advantage over other investors would be for them to obtain skills in analyzing and understanding accessible information. According to the Securities and Exchange Commission, “Under Rule 10b5-1, the SEC defines insider trading as any securities transaction made when the person behind the trade is aware of nonpublic material information, and is hence violating his or her duty to maintain confidentiality of such knowledge”(Reem Heakal).
An insider consists of someone who is accessible to information that has not yet been released to the public. These include CEO’s, executives, and directors that......

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Approximate Word Count: 1875
Approximate Pages: 8 (250 words per double-spaced page)

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