A section of Insider.Visit our homepage for the top stories of the day: https://www.businessinsider.com/Insider News on Fac... What you want to know about news. A section of Insider.What is insider trading?
What is insider trading? Insider trading is the action of buying or selling (“trading”) a security based on material information that is not available to the public. Although generally assumed to be illegal, there are times when insider trading can be legal.Can an insider buy a company’s stock?
SEC rules prevent insiders from trading company stock within any six-month period, so if an insider is buying their company’s stock an individual investor can reasonably surmise that the company’s growth prospects are good.How long does it take for insider trading to be reported?
The insiders conducting the trade must report the trade to the SEC within two business days of when the trade occurred. So if an insider sells 5,000 shares on a Monday, assuming there is no Holiday in between, they would have to report this sale by Wednesday.