Question

Greg, the president of an it company, is friends with jack, the ceo of hypertech, a company that develops and manufactures computer hardware. jack tells greg that hypertech is about to announce the creation of a revolutionary new computer processor that will quadruple processing capacity and cause hypertech's sales and profits to skyrocket. greg then purchases a large number of shares of hypertech company stock before the news of the new computer processor is made public. in which illegal activity has greg engaged?

Answer 1

Greg is engaged in "insider trading".

Insider trading is the purchasing or offering of a security by somebody who approaches material nonpublic data about the security. Insider trading can be unlawful or legitimate contingent upon when the insider makes the exchange. It is illicit when the material data is as yet nonpublic.

Illegal insider trading incorporates tipping others when you have any kind of nonpublic data. Lawful insider trading happens when chiefs of the organization buy or offer offers, yet they reveal their exchanges legitimately.