What is Stock Market Insider Trading?

**pinoycity** · 11-06-2011, 08:13 AM

There is some investigation currently on-going in the Philippine Senate. The investigations centers on a businessman, allegedly involved in Stock Market insider trading. And because of this insider trading, the government, allegedly, lost billions of pesos.

I am not that familiar on what insider trading is and how can this be done. Any ideas?

**MisterTickle** · 12-02-2011, 06:22 AM

Insider trading is basically doing hidden deals to manipulate the stock prices so big institutions can get a better deal. usually, only big institutions have the ability to do insider trader as they can control more volume as they have more money. Insider trading is basically possessing some sort of information that the general public does not know and making your trade ahead of everybody else so you can profit by selling when everyone is buying based on the information later released. hope it explains it.

**pinoycity** · 12-16-2011, 05:02 AM

I am not sure if there is a law in the Philippines that will punish those involved in insider trading. And if there is one, how much stronger it is. But I know that the US has laws regarding this and it has lots of teeth in it.

**Tuspee4love** · 12-21-2011, 12:53 PM

"Doing a hidden deal to manipulate the stock prices so big institution" What do you really mean or rather what are you trying to say. Is it what is popularly known as the robot trading because in forex, we have what is called robot trading where you are not going to be present, but will be getting the latest information and profit that you are suppose to make even while away from the business so i do not know whether the same thing is applicable here.

**pinoycity** · 01-08-2012, 05:15 AM

Robot trading in forex is quite different from insider trading in Stock Market. I guess, what mistertickle means with "manipulate the stock prices so big institutions can get a better deal" is that some inside job is being done to make the stocks either rise or decline in value so that some investors will be able to make tons of money from these stocks.

**rexway** · 02-05-2012, 03:38 PM

befor this kind of things took place that is insider trading there most be an agent from the organization who knows much abaut the situtaution,but with the stock market monitoring system I think this can be track down

**win1096** · 02-18-2012, 07:49 PM

i think stock market is better than to invest in forex trading if we work hard we can earn more money in stock exchang market

**pinoycity** · 02-29-2012, 05:13 AM

Originally Posted by rexway

befor this kind of things took place that is insider trading there most be an agent from the organization who knows much abaut the situtaution,but with the stock market monitoring system I think this can be track down

Yeah, insider trading cannot be done without the help of someone who is in the know, as far as internal secrets are concerned. In a criminal case, it is being called an "inside job". But I think, insider trading is also being considered as a crime.