Respuesta :
Create a strict code of ethics and explain that inside traders will be fired he do to lessen the chance of employees or board members taking part in insider trading.
What is meant by insider trading?
Any purchase or sale of a security made in violation of a fiduciary responsibility or other relationship of trust and confidence and based on substantial, nonpublic knowledge about the security is referred to as illegal insider trading.
What kind of trading are insider examples?
employees of companies that traded shares using their firm's platform, such as brokerage, banking, law, or printing firms, who traded using information they learned while doing services for the company. Government workers who traded on the basis of secret information they discovered as a result of their employment.
What makes insider trading prohibited?
Insider trading refers to the practice of persons having access to sensitive or important non-public information about a firm trading its securities.
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