Material Information is information that would affect a company’s current or future prospects or an investor’s decision to invest in the company.
Insider trading was first prohibited by the Securities Act of 1934, and then the Insider Trading Act of 1988 supplanted that early act. Insider information is defined as: material, non-public information. It is against the law to use material non-public information as the basis for placing a trade. Furthermore, it is also against the law to discuss this information with any member of the general public. Once the material information is available for public inspection it is no longer "inside" and can be discussed openly.
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