• Insider trading is the buying or selling of shares in a publicly traded company by someone who has non-public material information about those shares.

  • Material non-public information is any information that could materially influence an investor’s decision to buy or sell a security that has not been made available to the public.
  • This form of insider trading is illegal and carries harsh penalties, including both potential fines and jail time.
  • Insider trading may be legal if it complies with the rules set by the SEC.