What earnings exemption exists for individuals with insider knowledge?

Individuals with insider knowledge are prohibited from trading based on that information. This restriction is in place to maintain a level playing field in the securities markets and to prevent unfair advantages that could arise from possessing non-public, material information. Insider trading is considered illegal because it undermines investor confidence in the integrity of the securities markets. It is important for regulatory bodies, such as the Securities and Exchange Commission (SEC), to enforce these regulations to ensure that all investors have equal access to information when making investment decisions. Therefore, individuals in possession of insider knowledge must refrain from trading on that information to adhere to legal and ethical standards in the securities industry.