On Thursday, March 1st a large insider trading network was broken up on Wall Street. It took everyone by shock that thirteen people were involved in this insider trading and made millions of dollars off of it. The men had gained 8 million dollars illegally as profit from the securityindustry. Eight of the men were arrested while four pleaded guilty.
"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. Illegal insider trading refers generally to buying or selling a security without the company's consent and making a profit out of it. The traders would know information ahead of time and they would sell the information in exchange of millions of dollars.
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