Insider Trading
Also called: insider dealing, trading on inside information
Insider trading is dealing in a security while holding material non-public information about it, and in most jurisdictions it is a criminal offence. The rationale is market integrity rather than fairness alone: if outsiders believe prices reflect information they can never see, they demand a wider spread and liquidity dries up. Liability extends to tippees who knew the source was breaching a duty, which is how the chain of prosecutions usually runs.
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