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What is insider trading? Two finance experts explain why it matters to everyone

  • Written by Alexander Kurov, Professor of Finance and Fred T. Tattersall Research Chair in Finance, West Virginia University
What is insider trading? Two finance experts explain why it matters to everyoneFinancier Ivan Boesky was the real-life inspiration for Gordon Gekko of 'Wall Street.'Yves Gellie/Gamma-Rapho via Getty Images

Insider trading is the term used to describe the illegal act in which someone relies on market-moving, nonpublic information to decide whether to buy or sell a financial asset.

For example, say you work as an executive at a...

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