Insider Trading and Insider Buying: The Basics
Insider trading and insider buying both involve corporate insiders and company stock, but they differ significantly in legality and ethical implications. Insider buying is legal when it complies with SEC rules, requiring timely disclosure of transactions. Illegal insider trading, however, involves using confidential information to make trading decisions, which is strictly prohibited.
Worked Example: These Figures Today
The companies used as examples above, with the current figures behind them. Illustrations of the metric — not a ranking, not a shortlist, and not a recommendation.
| Ticker | Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|---|
| AAPL | Apple Inc. | $343.91 | -1.10% | $5.0T | 89 |
| TSLA | Tesla, Inc. | $391.62 | +5.21% | $1.5T | 57 |
| MSFT | Microsoft Corporation | $532.60 | +1.54% | $4.0T | 85 |
Examples of Insider Trading and Buying
Examples of companies with insider activity include:
* **AAPL:** Apple Inc., a frequently watched stock, is subject to scrutiny regarding insider transactions.
* **TSLA:** Tesla Inc., with its high-profile leadership, often sees significant attention to insider buying and selling.
* **MSFT:** Microsoft Corp. is another major company where insider transactions are closely monitored.
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“MoonshotScore rates a US-listed stock 0 to 100 using five sector-relative pillars. Higher means stronger numbers across business quality, safety, valuation, growth and momentum. Eligible common stocks and ADRs only; funds, ETFs, warrants, units, SPACs, preferreds, and notes carry none. It is built for education and deeper due diligence, not financial advice.”
Questions worth resolving before acting on the screen
What is considered material non-public information?
Information is material if a reasonable investor would consider it important in making an investment decision. It is non-public if it has not been widely disseminated to the public.
What are the penalties for illegal insider trading?
Penalties for illegal insider trading can include substantial fines, imprisonment, and disgorgement of profits. The SEC can also pursue civil charges.
How can I report suspected insider trading?
Suspected insider trading can be reported to the SEC through its tip line or online form. Whistleblowers may be eligible for financial rewards.