In this lesson, we’ll learn about insider trading as a form of securities fraud.

I. Insider Trading

Insider trading refers to securities transactions by corporate insiders, or people who receive information from corporate insiders, based on information that’s

gained through their insider status, or the insider status of the person who ultimately provided the information;

material; and

nonpublic.

This information is referred to as material nonpublic information, or MNPI.

The law of insider...