Insider Trading

When a transaction from an insider-supplied tip on a publicly-traded stock exchange occurs, the laws of supply and demand ensure that the buyer or seller on the other side of that transaction benefits. Insider-trading tips are, by definition, exclusive and not commonly or publicly-held information. Those on the other side of the transaction are not privy to this information; indeed, if they were, logic dictates that they would be performing the opposite transaction. A stock-exchange is the coming together of a large number of buyers and sellers who transact their business anonymously. I have no clue who buys the shares … Continue reading Insider Trading