By using this site, you agree to our Privacy Policy and our Terms of Use. Close

@Groucho - If the information is released to the public first then anyone can trade on it, but if you trade the stock based upon knowledge about the company that has not been released to the public then it is illegal. This law is an effort to create a fair trading environment. But yes there are a lot of people who create rumors to drive the price of the stock one way or another to benefit them.