What is insider trading and what can we learn from the highly-politicized Martha Stewart case regarding illegal insider trading? Find out on this episode of Market MakeHer. 😉
 
Illegal Insider Trading vs Legal Insider Trading

Legal Insider Trading is when company insiders (e.g., executives, employees or majority shareholders) trade their company's stock while following rules and regulations. They must report their trades to the Securities and Exchange Commission (you can search the EDGAR database) to ensure transparency and fairness (we talk about conspiracy theories regarding how people like Jeff Bezos sell off a lot of their shares, but it’s totally legal because they have to report it and it’s all public information that anyone can look up).

Illegal Insider Trading is when someone trades based on non-public, material information that gives them an unfair advantage. This includes tips from employees, confidential sources, or any form of access to proprietary information not available to the public. Like a secret that the public doesn’t know yet that would potentially affect stock prices. Illegal insider trading undermines market fairness and investor trust. This is why finance is so regulated.

👑 Icon and Legend Martha Stewart

Martha was convicted of obstruction of justice, not insider trading itself. Her case serves as a cautionary tale about the importance of transparency and honesty. She did her prison time, made the most of it, and completely rebuilt her brand after her reputation was tarnished. We talk about how she was made as an example and why it’s bad to lie. 😅
 

Reliable Resources on Insider Trading and Fraud:

SEC.gov
Investor.gov
EDGAR Database
FINRA.org
   
*Not legal advice nor financial advice, duh. This is educational and informational content.*

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Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

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