Advanced English Dialogue for Business – Insider trading

Listen to a Business English Dialogue About Insider trading

Eliana: Hi Paisley, have you heard about insider trading before?

Paisley: Yes, I have. Insider trading is when someone buys or sells stocks based on information that is not available to the public.

Eliana: That’s correct. It’s illegal because it gives the person an unfair advantage over other investors.

Paisley: Exactly. Insider trading undermines the integrity of the financial markets and can harm the trust investors have in them.

Eliana: Have you ever come across any examples of insider trading?

Paisley: Yes, there have been several high-profile cases where individuals, including corporate executives and employees, were prosecuted for engaging in insider trading.

Eliana: Right, insider trading can lead to severe penalties, including fines and imprisonment.

Paisley: It’s essential for individuals to understand the laws and regulations surrounding insider trading to avoid legal consequences.

Eliana: Absolutely. Companies also have measures in place to prevent insider trading, such as blackout periods and strict disclosure policies.

Paisley: These measures help maintain fairness and transparency in the financial markets, benefiting all investors.

Eliana: Thank you for the informative discussion, Paisley. Understanding insider trading is crucial for ethical investing.

Paisley: You’re welcome, Eliana. Yes, it’s essential to promote a level playing field and uphold the integrity of the markets.