What exactly is insider trading?

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I tried researching (I’ve been watching Suits and I’m at the part when Stutter is accused of insider trading) and I still don’t understand what they mean by “making trades based on nonpublic information”. So please explain like I’m five what this really means.

In: Economics

6 Answers

Anonymous 0 Comments

If you know something about a company that the average public doesn’t know, and you trade that company’s stock based on that knowledge, insider trading.

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