Relationship between Insider Trading & short term stock prices

Insider Trading is often associated with the illegal activity of trading in shares of ones company based on material non public information. But, insider trading is not always illegal. It is not illegal to own, or buy and sell shares of the company you work for, as long as the transactions are being disclosed publicly in a timely manner and as long as the information that is being used to trade is publicly available. This project focuses legal element of insider trading and its potential impact on short term stock prices. Technical trading schools often tout the relationship between Insider transactions and stock prices.