Is Insider trading legal?

Question

Is Insider trading legal?

Answer 1

No. In the UK, at least, it is a crminal offence to trade a stock whilst in the possession of inside information. That is information that is not in the public domain and would have a material effect on the share price, good or bad. It doesn't matter  if you make or lose money on the trade/s.

Answer 2

no it's not legal so don't tell no one

Answer 3

no, but very profitable. www.forex-profit.info

Answer 4

Depends.

""Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read "Forms 3, 4, 5" in our Fast Answers databank.

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information."

Answer 5

Insider trading is NOT legal.

REPAIRMANJACK  when "insiders" buy or sell stock their company's stock, it is not considered "insider trading". Granted they may be insiders but their transactions are reported to the SEC and/or Exchanges but these are considered transactions made by insiders NOT insider trading.

Insider trading refers to people entering trades based on information that is not known to the general public or made available to the general public, these people do not have to be employees or associates of the firm

Answer 6

ask Martha Stewart she did it

Answer 7

Trading on non public material information is NOT legal.

http://en.wikipedia.org/wiki/Insider_tra...

Answer 8

Yes and no.  An insider (like a company exec) often trades with a pre-established trading program.  This is so that any info they have (but that isn't public) won't have bearing on their decision to sell.  So if they know they're going to want to sell some stock, they set up a plan in advance to sell a certain amount of shares each month, regardless of the price.  But, if you have material (important) information that is not publicly disclosed, and you make the decision to trade while knowing that information, you are performing an illegal action of insider trading.