What is Insider Trading Abuse?
It is important to clarify what actually is insider trading we read and hear about so much in the headlines. Much is actually misinformation that feeds on the anti-Wall Street sentiment the media loves to spew.
It is difficult to accuse individuals of being guilty of insider abuse unless you make some basic distinctions. I do this by first distinguishing what is abuse of proprietary information, and what information is being ferreted out by legal securities analysis.
A way of investigating the insider trading concept: If you get the information from someone who is under a contract from his or her employer not to divulge information received while on the job, it is stolen insider information. If you do your own analysis to get the information, your information is legal.
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