Insider trading refers to the buying or selling of securities based on non-public, material information about a company. This practice involves individuals who have access to confidential information due to their position within the company, such as executives, directors, or employees, as well as outside parties who might receive tips from insiders. Insider trading can be legal or illegal, depending on when the trade occurs. Legal insider trading involves reporting the trades to regulatory authorities, while illegal insider trading occurs when the trader has not disclosed the material information to the public, potentially leading to unfair advantages in the market. This practice is considered unethical as it undermines the principle of a fair marketplace, giving insiders an advantage over regular investors who do not have access to the same information. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, monitor and enforce laws against illegal insider trading to maintain market integrity and protect investors.
The Future of SoundHound AI: A Mixed Bag of Sentiments Recent fluctuations in the stock price of SoundHound AI (NASDAQ: SOUN) have raised eyebrows, with its shares down 35% year-to-date…