Question 1

Is insider trading legal?

Accepted Answer

Insider trading is legal so long as the insiders report those trades to the SEC. Illegal securities trading occurs when the insider is violating a fiduciary duty or fails to report their trades.

Question 2

What are some examples of market manipulation?

Accepted Answer

Insider trading, pump and dump schemes, front running and wash trades are all examples of market manipulation. Investors who track insider asset movement should think carefully about why these insiders are trading their stocks before moving forward.