what is insider trading?

Insider trading refers to the buying or selling of a security by someone who has access to material, non-public information about the security. This information is not available to the general public and could potentially affect the price of the security.

Insider trading is considered to be fraudulent because it allows the insider to profit from information that is not available to other investors. It can also create an uneven playing field, as the insider has an advantage over other investors who do not have access to the material, non-public information.

Insider trading is illegal in most countries, including the United States and India. Regulators and law enforcement agencies are responsible for enforcing insider trading laws and punishing those who engage in this activity.