TrainingBriefs® Using Inside Information

Everyone needs to remember that it is a federal crime to trade securities, including the distribution of 401k’s, based on “inside information” – information you learn about your company or a closely allied company which is not generally available to the public, and which could cause the security’s price to change if it became known.

Insider information is material information about an organization’s activity that has not yet been communicated to the general public. It’s illegal for anyone with access to insider information to buy or sell stock based on it.