Insider trading in violation of federal securities laws usually occurs when a person who operates "inside" a corporation has access to material non-public information and uses that information to trade in securities without first disclosing that information to the public.

Question

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Insider trading involves using non-public information for personal gain, which is illegal under federal securities laws. This type of activity is considered fraudulent and can result in civil and criminal punishments.

Insider Trading in Violation of Federal Securities Laws Usually Occurs