Fort Campbell, KY asked in Business Law and Stockbroker Fraud for Tennessee

Q: What is insider trading? And if I’m buying and selling stocks am I at risk if I buy and sell stocks based on what I see?

Example if I buy stocks in apple after a lawsuit or a product flop when stocks low and turn around and sell the stocks when they release a new product when stocks are high. Is that insider trading??

1 Lawyer Answer
Mr. Kent Thomas Jones
Mr. Kent Thomas Jones
  • Criminal Law Lawyer
  • Cleveland, TN
  • Licensed in Tennessee

A: Based on your statement, it looks like you are asking if insider trading is buying or selling stocks based on what you, as a member of the general public sees, for example, on the news. That is not insider trading. Insider trading would be if you are an employee of Apple, for example, and you know something is going to happen and benefit from it. In other words, you are an insider. You are not an insider if you just generally have the same information that anybody would have.

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