What is Insider Trading?

The concept of insider trading is similar to having prior access to the answers before taking a test. Let us understand the definition of insider trading.

Insider Trading Meaning

Insider trading is an unfair practice where insiders, such as key employees or executives of teh company, who have access to valuable information about the company, take undue advantage to profit from trading the company’s stocks. SEBI highly discourages insider trading to facilitate fair trading in the market.

In India, insider trading has serious implications. Traders and intermediaries must make themselves aware of the regulations involving price sensitive information. Price sensitive information includes that which is revealed to only a set of people, the usage of which can give traders an unlawful upper hand while trading in the market.

To check out insider deals, you can check the Daily update section at StockEdge