How to identify fraudulent and illegal transactions due to Insider trading
Insider trading becomes illegal when a company's employees or representatives give out material nonpublic information to their friends, family or fund managers, for example. Another way that insider trading can occur is if non-company employees, such as those from government regulators or accounting firms, law firms or brokerages gain material nonpublic information from their clients and use that information for their gain.
In all these situations, the affected company may experience significant damage.
