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Feb 16, 2012
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insider trading

insider trading, stock market transactions made with knowledge of nonpublic information about corporate activity. In the United States, it has been illegal since 1934. The Securities and Exchange Commission regards it as unfair to investors who are not privy to such information. Several insider trading scandals shook Wall Street in the mid-1980s.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University Press. All rights reserved.

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