What is Insider Trading?
Now, that much knowledge of the share market is enough to understand insider trading.
There is a person named XYZ who works in a company, he knows that tomorrow the company will declare its results and because its results are good. He knows that after the results are out, the company's shares will be raised. So he buys shares worth crores before the results come into the market and as soon as the price of the shares goes up after the results, he gets a lot of profit. In the same way, if a contract slips out of the hands of the company, then that person first comes to know and sells all his shares. Any person who has company unpublished sensitive information trading by him is called insider trading. Such people who do trading before the information of the company comes to market, are kept in the category of insider trading. Now if a person says that he did not have the unpublished information of the company, To avoid this, everyone who has access to unpublished information will be placed in insider trading.
Insider Trading
Sometimes there is some news that the stock exchange board has fined someone because he did insider trading of a company. Insider trading also had a small part in some movies like ‘Harshad Mehta scams’. Another popular stock market movie ‘Wall Street’ which was released in 1987 also mentioned insider trading.