INSIDER TRADING - a visual explainer
Below is the transcript of this beautifully explained video So what is insider trading? The key to insider trading is what's called material non-public information. Insider trading takes place when a person in possession of material non-public information about a company buys or sells that company's stock. Imagine a chicken farm owned by a company called OrgEgg. Don't worry, it's a free-range organic farm, where the birds roam free over several acres. Because the birds are happy and well fed, they produce vast quantities of eggs and OrgEgg makes pots of money and its stock goes up, up, up. There are certain things that everyone knows about the farm. They know how many hens there are, what they eat and on average how many eggs they lay. This is in the OrgEgg annual report, and thus it's all public information. There are some things that only the company, the farmer and his hens know -- such as the gauge of his shotgun, the times of day that he f...