insider trading

Insider trading is the buying or selling of securities on the basis of material, non-public information in breach of a duty of trust or confidence, a violation of federal securities law enforced principally under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. It also extends to tipping, in which an insider passes confidential information to others who trade on it, and proving it generally requires showing both possession of inside information and a breach of duty. The trading activity occurring shortly before some of Donald Trump’s market-moving social media posts and executive decisions form a pattern researchers say is consistent with trading on advance knowledge.