Insider trading policies

Insider trading policies are rules that prevent individuals with non-public, material information about a company—like executives or employees—from buying or selling the company’s stock based on that information. Such trading is considered unfair since it gives insiders an advantage over regular investors. These policies aim to maintain a level playing field in the financial markets, ensuring that all investors have access to the same information when making decisions. Violating these rules can lead to severe legal consequences, including fines and imprisonment. Overall, insider trading policies help promote transparency and trust in the stock market.