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Insider Trading
Posted By: TradersLog
Insider Trading is trading activity that is influenced by sensitive information that has not yet been made public – where the inside knowledge is used to exploit the price movements that will take place when the data is released.
The fact that the information is not available to other market participants upsets the transparency of the marketplace and it’s use is considered unfair and illegal. Insider trading was made illegal in the United States in 1934.
See also: Front Running
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