+17 Why Is Insider Trading Illegal Reddit 2022. Insider trading is when an employee or executive “in the know” pulls out of a stock before the public gets wind of bad news. Following up i read this article.
The meme of the day, as admirably summed up by paul murphy, is the question of why exactly insider trading is illegal, and whether it should be.i seem to recall a trenchant column by holman jenkins in the wsj around the time of the martha stewart case arguing that it shouldn’t be, but i can’t find it right now, partly because the wsj keeps on telling me that. News about a new product, a merger with another company, or a change in leadership can affect price action. It also puts the interests of the insider above the interests of those to whom he has.