What is insider trading? In accounting
1 answer
In accounting, insider trading refers to the illegal practice of buying or selling securities based on non-public, material information about the company's financial performance, business operations, or other important events. It involves individuals who have privileged access to such information due to their position within the company, such as executives, directors, or employees. Insider trading can lead to unfair advantages for those involved and may result in financial harm to other investors in the market. It is strictly regulated and illegal in most jurisdictions.