what does insider trading involve
Insider trading is the trading of a public company's stock or other securities by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make. The authors of one study claim that illegal insider
There are a number of cognitive barriers that may be involved in the decision to engage in insider trading. First, some investors or groups may be subject to the “illusion of superiority,” believing that they are at least as ethical, if not more so, than anyone else; no one wants to believe or admit that they are not as honest or impartial as they ought to be.