Insider trading is legal if an insider (a director or higher in a company or someone who owns 10% or more of the company) does so through transactions registered with the SEC via advance filings.

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

All of the following are examples of insider trading EXCEPT:

If the tipper owes a fiduciary duty to a company or its shareholders

If the information is material and nonpublic

If the insider buys or sells shares of their company or a subsidiary through an advance filing

If the tippee knows the information was confidential