Whether knowing of insider information is not illegal


Problem: Usually when someone brings up inside trading we automatically think of famous illegal high profile cases such as Martha Stewart in the 2000s, Enron in the 1990s and the infamous trader himself, Ivan Boesky during the 1980s. Now all of these cases were similar in that they were involved in obtaining inside information and used that information to their advantage. In the world of the stock market, inside information is defined as "material, nonpublic, factual data that can be used to buy or sell securities at a profit" (Sukys, 2020). Knowing of insider information is not illegal, what one does with that information is what can get someone in trouble, however.

 

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