Government agency is responsible for protecting against the unethical practice
When does insider trading occur? What government agency is responsible for protecting against the unethical practice of insider trading?
Insider trading is the buying or selling of a security based on material nonpublic information. Material information is information that could affect the price of a security if it were known to the public. Insider trading is illegal because it gives the insider an unfair advantage over other investors.
Insider trading can occur in a number of ways. For example, an insider could buy or sell a security based on information that they learned from their job, such as a company’s upcoming earnings report. An insider could also give this information to a friend or family member, who could then trade on it.