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3 years ago

insider trading laws prevent employees from buying or selling the securities of their employers. true or false

Business

1 answer:

Pani-rosa [81]3 years ago

4 0

Answer:

The statement is: False.

Explanation:

While often associated with illegal activity, insider trading encompasses both illegal and legal trading of securities and is monitored by the <em>Securities and Exchange Commission </em>(SEC). Illegal insider trading occurs when a person uses material, non-public information to decide between buying or selling a security.

Legal insider trading takes place when corporate insiders, officers, directors, and employees trade securities issued by their own company. When a corporate insider buys or sells his company's securities, this trading activity must be reported to the SEC, which then discloses this information to the public.

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