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Is insider trading always illegal?

There are some white collar crimes that are confusing to understand. Insider trading charges are prime examples of this because they are legal in some instances and illegal in others. This is why it is important for Cincinnati residents to understand what the term means and what can make it illegal.

In its most basic form, inside trading is when someone who has access to material information about the security that has not yet been made public, buys or sells it. Not only does the person have to take these actions, but it could also be illegal to tip off others when one has this special knowledge. What makes it illegal? If the person has access to special knowledge that is not available to others, giving them an edge over everyone else makes it a crime.

Even though the term has negative connotations, insider trading could also be legal. For example, when company directors buy or sell shares, they disclose their transactions and are regulated by the Securities and Exchange Commission. Companies also list them on their website. In fact, it takes place legally in stock markets regularly.

Since this post only offers general information and cannot be considered legal advice, those facing white collar criminal charges may want to consult an experienced attorney to discuss their individual circumstances. Understanding federal law and its applicability can be complicated, but when one is accused of committing crimes, it is important to understand the charges so one can defend themselves and the good name they have created for themselves.

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