What is illegal trading?

Illegal trading can refer to several different types of activities involving the buying and selling of goods or services that are prohibited or restricted by law. Some examples of illegal trading include:

- Insider trading: This involves trading on the stock market using non-public information about a company that could affect its share price.

- Front running: This is when a broker or trader places a trade for their client before executing the same trade for themselves, potentially profiting from the movement in the market caused by their client's trade.

- Wash trading: This is the buying and selling of the same security multiple times in a short period without the intention of changing ownership, creating artificial volume and potentially misleading other investors.

- Pump-and-dump schemes: These involve artificially inflating the price of a stock through positive publicity and then selling the stock at a higher price, leaving other investors with worthless shares.

- Unlawful insider trading: This is when someone buys or sells a stock based on nonpublic information from a corporate insider.

- Front-running: This is when a broker or dealer trades on his own account ahead of a client's trade, using information about the client's trade to take advantage of the market.

- Short selling without intending to deliver: This involves selling shares of a company on the open market without actually owning the shares or borrowing the shares from a third party, which can contribute to a decline in the company's stock price and could be considered illegal if done in a way that is intentionally misleading or manipulative.

- Money laundering: This is the process of concealing the illicit origins of money or assets through a series of transactions to make it appear legitimate.

Illegal trading can have serious consequences, including fines, imprisonment, and the loss of any profits gained from the illegal activities.