What is insider trading and circulatory trading?

Insider Trading : The buying or selling of a security by someone who has access to material, nonpublic information about the security.

Insider trading can be illegal or legal depending on when the insider makes the trade: it is illegal when the material information is still nonpublic--trading while having special knowledge is unfair to other investors who don't have access to such knowledge. Illegal insider trading therefore includes tipping others when you have any sort of nonpublic information. Directors are not the only ones who have the potential to be convicted of insider trading. People such as brokers and even family members can be guilty.

Insider trading is legal once the material information has been made public, at which time the insider has no direct advantage over other investors. The SEC, however, still requires all insiders to report all their transactions. So, as insiders have an insight into the workings of their company, it may be wise for an investor to look at these reports to see how insiders are legally trading their stock.

Circular Trading is a Buzzword and it indicates a type of fraudulent trading. In this situation, sell orders are entered by a Stock broker who is aware of the corresponding buy orders or the vice versa. This is done with a number of intentions, the main one being that the volumes of the shares traded is boosted artificially. At the same time, stock brokers indulging in Circular Trading are able to artificially boost the price of the shares being traded in this fashion by them.

Insider Trading:

the stockmarket is founded by the principle that all information becomes public for everyone at the same time. this is to prevent people from abusing something they know disadvantaging the person they trade with. Insider trading is when people in priviliged positions (e.g. a person that works for the financial departement of a public corporation) using information they have to their advantage, that is not yet public to make profits on the stock market.

Think an accountant that knows apple did well, before apple publishes his good figues. he buys in before the figures are published. the informations becomes public the stock goes up, he walks away with an unfair profit.

im sorry but ive never heard of circulatory trading.

Trading on inside , or priveleged, information is illegal. As is passing on inside information to someone else who trades on that knowledge. Don't know what circulatory trading is but it could be a group of people who know each other trading a stock between themselves in order to manipulate the price. Again illegal.