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Information can only be acted upon once it has been made public, otherwise, unfair trades would take place that could negatively affect the general public and shareholders of the company. Those who are employees of the company upon employment have a signed agreement to put the interests of the shareholders first. Acting on tips from within the company or other sources could negatively affect the corporation’s success, resulting in a shareholders loss.
Martha Stewart became involved with an insider trading scandal back in December of 2001. Suspicion came about when Stewart and other executives of a company called ImClone made a timely sale of their stock...
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