SIE: 9.1.2. Insider Trading

9.1.2. Insider Trading

Insider trading occurs when someone trades securities using material, nonpublic information. “Material” in this context means information an investor would find relevant when making an investment decision. Material information has also been described as information that could affect the price of a security. Information that is made public by the issuer, such as a declared dividend, is not considered to be non-public information. It is unlawful for anyone who gains material, nonpublic information and knows it to be confidential to trade on such information. I