Insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public.

Question

Quizplus · Accepted Answer

Insider trading is illegal because it involves trading a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic, material information about the company, giving them an unfair advantage over other investors who do not have access to this information.

Insider Trading Is Prohibited Because Trading on the Basis of Inside