The purchase or sale of securities based on information one has a fiduciary duty not to use can be the crime of insider trading.

Question

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Insider trading involves trading stocks based on nonpublic information, which is illegal. If someone has a fiduciary duty, such as a corporate insider, they have a legal obligation to act in the best interest of their clients or the company and not use that information to their advantage in trading. Therefore, using such information to make a trade can result in criminal charges.

The Purchase or Sale of Securities Based on Information One