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Are You Guilty of Insider Trading?


If you’re an active investor who occasionally buys or sells a stock based on tips, you might be understandably nervous about the recent indictment of U.S. Rep. Christopher Collins for alleged insider trading.

The New York congressman is accused of feeding information he received as a board member of biotechnology company Innate Immunotherapeutics to help his son and others avoid thousands of dollars in losses after one of the firm's drugs failed a clinical trial.

But it is perfectly legal (although potentially unwise) to trade on some tips that you hear or overhear. Illegal insider trading is all about facts and circumstances.

Here we offer you ten situations that may or may not constitute illegal insider trading. Can you tell which ones might get you in trouble? Take our quiz and see.

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