Insider trading is difficult to prove without a paper trail but sometimes the signs are obvious. Studying the stock prices of major corporations over a one year period helped highlight that insider trading was taking place. In this Insider Trading video below it states 40% of stock prices leading up to mergers over $1b USA experience spikes BEFORE the announcement was made.
The continued policing and prosecuting of insider trading is seen as improving the credibility of the market and creating a more level the playing field for investors.
Other Insider Trading articles
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What is insider trading?
Decriminalising insider trading proposal
Legal and illegal insider trading
