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Financial Market — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Market3 Marks
Question
What do you mean by insider trading?
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Answer

An insider is any person connected with the company who is reasonably expected to have access to price sensitive information (in respect of securities of company), which is not available to the public at large. Drectors, promoters, etc. are the insiders. When such directors, promoters, etc. of the company use privileged information that they alone have to access by virtue of their being insiders to make individual profits, it is referred to as insider trading.

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