Why Insider Trading Is So Hard To Stop

Insider trading is a type of market abuse when an advantageous trade is made based on material nonpublic information. The issue is there’s not a specific law defining what insider trading is, which makes it difficult to prosecute cases as they arise. Additionally, a major component of prosecuting a case is proving intent, which requires a lot of evidence to support the claim. Watch the video above to learn more about what insider trading is and why it’s so difficult to stop. Chapters: 00:00 — Introduction 01:22 — Defining insider trading 03:19 — Prosecuting insider trading 07:41 — Who gets investigated? 10:27 — Activist investors Produced by: Charlotte Morabito Additional Reporting by: Mary Hanan, Meghan Lisson Camera by: Junghun Park, Gerard Miller, Marco Mastrorilli, Bob Briscoe Audio by: Paul Alfe, Francesco Lo Cascio, Juan Roche Edited by: Nora Rappaport Animation: Mallory Brangan Supervising Producer: Lindsey Jacobson