Sample Essay

After reading a news about final approval of FDA for one of the new drugs of the company 100 shares were bought in the company on 26th October 100 which were valued at $1500 based on a $15 market price. The stock price started increasing and the gain on investment started increasing with it and reached level of $2,100 at month end.

This is not an example of insider trading as the approval of the drug was published in a newspaper and all investors were aware of this fact and had an equal and fair opportunity to make decisions about investment in shares of the company.

Date Share Price Gain
26-Oct $15
27-Oct $22 $700
28-Oct $27 $1,200
29-Oct $33 $1,800
30-Oct $36 $2,100

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