{"id":13229,"date":"2018-08-12T21:27:15","date_gmt":"2018-08-12T21:27:15","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=13229"},"modified":"2018-08-12T21:27:15","modified_gmt":"2018-08-12T21:27:15","slug":"what-is-insider-trading-the-crime-rep-chris-collins-was-charged-with","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/what-is-insider-trading-the-crime-rep-chris-collins-was-charged-with\/","title":{"rendered":"What is insider trading, the crime Rep. Chris Collins was charged with?"},"content":{"rendered":"

Jena Martin<\/a>, West Virginia University<\/a><\/em> and Karen Kunz<\/a>, West Virginia University<\/a><\/em><\/span><\/p>\n

The arrest<\/a> of Congressman Chris Collins shines light on one of the sexier crimes that the securities laws has to offer: insider trading. <\/p>\n

It\u2019s the subject of many iconic movies like \u201cWall Street,\u201d television shows like \u201cBillions\u201d and real-life scandals<\/a> involving celebrities, politicians and others.<\/p>\n

But despite all the media attention, very few people<\/a> actually know what insider trading is under the law and how it gets people into trouble. As finance experts<\/a>, we<\/a> are here to fill that gap.<\/p>\n

What is insider trading?<\/h2>\n

As its most basic, insider trading is when someone \u2013 usually a corporate insider \u2013 buys or sells securities such as a stock or bond based on \u201cnon-public information.\u201d <\/p>\n

For instance, Martha is a board member at Company X and learns of an incredible breakthrough at her company that hasn\u2019t been disclosed to the public. If she then uses that information to buy her company\u2019s stock \u2013 knowing that the stock price will go up after the announcement \u2013 Martha is likely guilty of insider trading. <\/p>\n

Under current laws, the insider can also get into trouble if he or she shares that information with others \u2013 who could face prosecution as well if they make a trade using the information.<\/p>\n

\n