Insider trading occurs if a company employee or executive uses material inside information to make a profit.

Name: Insider trading occurs if a company employee or executive uses material inside information to make a profit.
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Question

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When a company employee or executive uses material inside information to make a profit,he or she is engaging in insider trading.Insider trading is illegal because it gives the violator an important advantage over the general public and shareholders.

Insider Trading Occurs If a Company Employee or Executive Uses