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Insider Trading: What's Legal, What's Illegal, and How the SEC Catches People

Beginner Investing • 6 min

Company executives buy and sell shares of their own company all the time. It’s completely legal, as long as they stick to the rules. The difference between legal and illegal insider trading isn’t about who’s trading. It’s about what they know when they make that trade.Legal insider trading happens when an executive buys or sells their company’s stock. They file a Form 4 with the SEC within a few business days. They…

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