Classical theory of insider trading

{
  "id": "MLC-T-LAW-001008",
  "term": "Classical theory of insider trading",
  "field": "Law",
  "definition": "A legal framework that prohibits corporate insiders from trading in their company's securities on the basis of material, nonpublic information. This theory rests on the idea that such insiders owe a fiduciary duty to the shareholders of their corporation. Trading on undisclosed information constitutes a breach of this duty, defrauding the shareholders with whom they trade.",
  "url": "https://mlchart.com/terminology/law/classical-theory-of-insider-trading/"
}