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Insider trading facts for kids

Kids Encyclopedia Facts

Insider trading means the trading of public companies' stocks and other assets on stock markets using secret information. This is done by getting people who have confidential or non-public facts about how much a stock is really worth to tell traders so they can buy or sell. A stock could be worth more or less than the public knows, depending on how well a company is doing in making money.

In many countries, insider trading with secret information is against the law and thought to be a bad thing to do.

Some economists think insider trading should be allowed.

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Insider trading Facts for Kids. Kiddle Encyclopedia.