insider trading laws prevent employees from buying or selling the securities of their employers. true or false

The statement is: False.

Explanation:

While often associated with illegal activity, insider trading encompasses both illegal and legal trading of securities and is monitored by the Securities and Exchange Commission (SEC). Illegal insider trading occurs when a person uses material, non-public information to decide between buying or selling a security.

Legal insider trading takes place when corporate insiders, officers, directors, and employees trade securities issued by their own company. When a corporate insider buys or sells his company's securities, this trading activity must be reported to the SEC, which then discloses this information to the public.