Lesson 28

Insider trading and market supervision

What is insider trading?

Trading on confidential information that is not yet public gives an unfair advantage over all other investors. It is forbidden, in the real world just as in Leonis.

The Leonis Market Authority

The fictional Leonis Market Authority watches for unusual trades: a large stake shortly before important news, an unusual profit, repetition. If insider trading is proven, the profit is taken away and a fine, a trading ban and a worse reputation follow. And tips are not always right.