Insider Trading Regulations

Insider trading regulations are rules designed to prevent individuals with non-public, material information about a company from buying or selling its stock based on that knowledge. This means if someone knows something important about a company—like a merger or financial troubles—they can't use that information to gain an advantage in the stock market. Violating these regulations can lead to severe penalties, including fines and imprisonment. The aim is to ensure a level playing field for all investors, maintaining trust and integrity in the financial markets.