The top markets regulator in the United States is currently investigating the guardrails in place to prevent insider trading, according to an official statement. The Securities and Exchange Commission (SEC) is focusing on ensuring that proper measures are in place to prevent individuals from using non-public information for personal gain.
Insider trading is a serious offense that undermines the integrity of financial markets and erodes investor confidence. It occurs when individuals buy or sell securities based on material, non-public information, giving them an unfair advantage over other market participants.
