Most companies these days often put a non-disclosure agreement into the pre-employment protocol in order to protect their own assets and liabilities. After all, a business can be just like a family – and nobody wants their dirty laundry out in the open for the entire world to see. However, there are somewhat more damaging consequences should this agreement be tampered with as that might constitute as insider trading.
From the phrase itself, it can be assumed that insider trading means that there is trade that came from the inside of somewhere. So what’s the big deal about insider trading?
Well, imagine a scenario that goes like this. You are a major stockholder of a certain corporation and, with inside information, you sell the stock just before its market value drops, thereby making a profit due to having access to nonpublic information.
Think of a scenario where someone wins the lottery because they rigged the machine – flesh that of scenario out and involve different variables and factors and you have the basics of an insider trading case. Sometimes, this isn’t even done with intent and just so happened to coincide with the circumstances – and if you are caught in the crossfire of an insider trading case, you need to find competent legal assistance immediately.
If the company you work for is dealing with a case of insider trading then the chances are, the company has already been investigation for quite some time. It is then imperative to make sure you are immediately represented and that your involvement is clarified in order to avoid unnecessary allegations that then put you in the line of fire against the law.
It is important to act logically and swiftly in situations like this in order to protect yourself from the possible repercussions in being associated with a case of insider trading.