Question

Does insider trading hurt anyone? yes or no

Does insider trading hurt anyone?

yes or no

Homework Answers

Answer #1

Yes , insider trading hurts the investor's.

When information that helps the investor's make profits is leaked out by someone inside the board of directors of the company, the investor's opportunity of making profit from that information is lost. This is because investor's would be late in knowing the information when compared to some other person to whom the information is leaked and this takes away his opportunity to make profits. And thus the investor gets hurt from insider trading.

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