Trading on Insider Information is Illegal

Insider trading occurs when someone makes an investment decision based on information that is not available to the general public. Insider Trading implies buying, selling and dealing in shares and securities of a listed company by insiders such as directors, designated officers of management team, employees of the company or any other connected persons such as auditors, consultants, lawyers, analysts who possess material inside information which is not available to general investors. Insider trading is illegal and should not be done. Depending upon the severity of the case, insider trading penalties generally consist of a monetary penalty and jail time.