Legality of Insider Trading

[Suba]

Insider trading is the activity of one or more people when buying/selling stocks or crypto on an exchange but based on information from within the exchange or insiders. Very material or important information has not been announced to the public, so that buyers/sellers of stocks or crypto will make huge profits. As far as I know, an insider will have several subordinates (not insiders) and are given capital to buy certain stocks, after a few days the price soars the subordinates will sell the stock by making a huge profit and then they will share the profits. You need to know that a registered securities employee is not allowed to buy and sell stocks on any exchange.

In some countries insider trading is prohibited or illegal, such as the SEC and OJK Indonesia also prohibit insider trading and always detect the possibility of insider trading. So in your opinion, why is insider trading prohibited?

 

[kit_hung]

This insider trading is like a game of stealth. Those with inside information exploit their position for their own gain before others even know what's going on. This creates inequality in the market, and ordinary people lose money without even realizing it. There's a complete lack of fairness, as not everyone has the opportunity to obtain this information in advance.

The law prohibits this because it protects people's trust in the markets. Without it, people would be afraid to invest. Governments like the Securities and Exchange Commission (SEC) and the Securities and Exchange Commission (OJK) conduct thorough investigations to ensure equal opportunities for everyone. This ensures discipline and transparency. Without it, the economy can stagnate, and many people can suffer. This is completely unfair.

 

[Starmix]

Inside trading is also prohibited in my country. Many were victims of this. The government made a public announcement not to participate on this. Harsh sanction will be imposed.

 

[Stardom22]

For me l have never heard about such a venture before for sure. Unless one is into the trading of stocks to know it.