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explain how buying or selling stocks of business with having information from an inside person that...

explain how buying or selling stocks of business with having information from an inside person that is not know to the public

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Insider Trading is the practise of trading on on the stock exchange to one's own advantage by having confidential information not available in public domain from an inside person having knowledge of the same. Different countries have different rules regarding the same and many countries treat it as illegal.  Securities and Exchange Board of India defines "insider" as any person in receipt of Unpublished price sensitive information.

Insider Trading is illegal in many countries as it gives unfair advantage compared to general public not privy to such information. Employees can trade the stocks of the company they are working for but are required by law to inform the exchanges about the same.

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