What Is Insider Trading?Insider trading involves trading in a...

What Is Insider Trading?Insider trading involves trading in a public company's stock or other securities by someone with non-public, material information about the company. Insider transactions are legal if the insider makes a trade and reports it to the Securities and Exchange Commission, but insider trading is illegal when the material information is still non-public.Those who commit insider trading face harsh consequences, so it's important to know what it is and how to avoid it if you own company shares and have information that can affect other investors.

When it comes to defenses against insider trading allegations, there are several strategies that individuals can employ.
Lack of Material Nonpublic Information: One of the primary defenses is to demonstrate that the trades were made based on publicly available information. If the information used for trading was not material or nonpublic, it may not be considered insider trading.
Pre-arranged Trading Plans (Rule 10b5-1 Plans): Executives and insiders can set up pre-arranged trading plans that outline specific dates and conditions for buying or selling company stock. These plans can help establish that the trades were not based on inside information.

Civil Penalties:Individuals found guilty of insider trading may face civil penalties. These can include fines, disgorgement (returning ill-gotten gains), and other financial sanctions.The Securities and Exchange Commission (SEC) can impose these penalties.
Criminal Penalties:Insider trading is also a criminal offense. If convicted, individuals may face imprisonment.The length of imprisonment can vary based on the severity of the offense, but it can be several years.
Disqualification from Trading and Industry Roles:Convicted individuals may be barred from serving as officers, directors, or employees of publicly traded companies.They may also be prohibited from trading in securities.
Reputation Damage:Insider trading convictions can severely damage an individual’s reputation.It can impact their professional and personal life.
Restitution and Compensation:In addition to fines, convicted individuals may need to compensate affected parties for losses resulting from their actions.

Can we now please drop the subject about Directors and senior employees not buying shares and just concentrate on the WORK that they have and ARE or are not doing??