Insider Trading

Insider trading occurs anytime that an employee of a company buys or sells stock in the company that they are currently employed by. This is a crime if the employee, whether selling or buying stock, is using knowledge that is not available to the public.

While insider trading seems to only exist in high-level trading, according to the Securities and Exchange Commission, insider trading occurs every day. However, not all trading by employees of company stock is illegal, only when they are operating on information that is not available to the public. In addition, if an employee gives out private company to another person who owns stock in that company, if they use that information to buy or sell stock it is also considered insider trading. It is important to understand the rules of insider trading so that you are able to make judgments about whether you are operating within the law. If you think that you may have illegally bought or sold stock based on private company information, you should contact an attorney immediately to determine the best course of action.

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