Insider trading is a notorious form of white-collar wrongdoing that most people are familiar with. The law prohibits you from trading stock when you know material nonpublic information (MNPI) about a company, i.e. information that will move the company’s stock price when it is made public.
Fewer people know that you could face accusations that you violated the insider-trading rules accidentally as well as intentionally. Examples include inadvertently tipping others about MNPI or simply possessing MNPI at the time of an otherwise innocuous trade, even if the information had nothing to do with your trading decision.
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