why is most insider trading against the law
Insider trading
short
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
Insider trading is the trading of a public company 's stock or other securities ( such as bonds or stock options ) 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 .