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--ever since the 1930s
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--that the general public is not allowed to invest in things
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that are not properly documented.
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Another important distinction in securities regulation is
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the distinction between insider and outsider.
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An insider is someone who is privy to the secret information of
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a company and the secret information could be used to trade.
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If you know the secrets of a company,
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if you know some good news
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about the company before the public does,
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you could buy the shares of the company
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and experience the profit when the price goes up.