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On insider trading, policymakers are ambivalent. An insider trade is the act of trading shares of a publicly-traded company based on factual, nonpublic information about the company. The Securities and Exchange Commission in the United States has declared insider trading damaging to the financial sector and has regulated it since 1934. Communicating insider trading fraudulent conduct is questionable. In most countries, laws and rules are enacted without considering the harmful and beneficial aspects. Insider trading is illegal since it undermines the public's trust in the capital markets and provides insiders with an unfair advantage/enrichment. A lack of fair play makes illegal insider trading detrimental to small investors and markets. By delivering more informed equilibrium pricing, insider trading contributes to the economy's overall welfare. Despite being a source of consternation for investors, insider trading can sometimes serve as a 'leading indicator.' The criminal justice system has several provisions for dealing with fraudulent transactions. This study analyzes the need for statutory provisions regarding insider trading and examines whether or not an insider trading law is redundant.