Navigating the stock market often involves deciphering complex terms and concepts. One such term you may encounter is 'insider trading'. In this beginner-friendly guide, we'll unravel the meaning of insider trading, explore why it's illegal, and dive into a real-world example to bring this concept to life. What is Insider Trading? Insider trading involves the buying or selling of a public company's stock by individuals who have access to non-public, material information about the company. These insiders can include company executives, employees, and even family or friends who gain access to this information. The Illegality of Insider Trading Insider trading is illegal because it breaches the fairness and integrity of the securities markets. Insiders who use confidential information for personal gain create an unfair playing field against the general investing public who lack access to such information. This breach of trust is why regulatory bodies, such as the U.S....