When you hear the term “insider trading,” you

But you don’t have to be famous or wealthy to be guilty of it. In fact, it’s possible to engage in insider trading without even knowing it.

In this article, we’ll look at the ins and outs of insider trading and how to make sure that the investing you’re doing is above board – and won’t come with a stint in jail.

What Is Insider Trading?

Insider trading is the practice of using information that has not been made public to execute trading decisions. It gives traders an unfair advantage over others and most forms of insider trading are illegal. Many investors are tempted to make quick returns from insider trading, but doing so can be dangerous. Insider trading is routinely investigated by the Securities and Exchange Commission (SEC) and prosecuted.