ABSTRACT –
Insider trading, the buying or selling of a publicly traded company’s stock by someone who has non-public, material information about that stock, is a persistent concern in financial markets. This research paper provides a comprehensive analysis of insider trading patterns and their implications. Through a combination of literature review, empirical data analysis, and case studies, this paper examines the prevalence, motivations, detection methods, regulatory frameworks, and impact of insider trading. It also explores the ethical, legal, and economic ramifications of insider trading on market efficiency, investor confidence, and overall market integrity. By shedding light on insider trading practices and their consequences, this paper aims to contribute to a deeper understanding of market dynamics and inform policymakers, regulators, investors, and market participants on measures to mitigate the adverse effects of insider trading.
Keywords: Insider trading, Market efficiency, Investor confidence, Regulatory frameworks, Market integrity.