Definition
A conflict of interest occurs when personal interests interfere with professional duties, and insider trading is using confidential information for personal financial gain.

Introduction
Trust collapses when private motives shadow public duties. Transparency is the antidote to conflict.

Explanation
1️⃣ Forms – Financial, relational, or positional conflicts.
2️⃣ Insider Trading – Buying/selling stocks using unpublished information.
3️⃣ Prevention – Disclosure, recusal, independent oversight.
4️⃣ Corporate Policies – Strict insider trading codes and blackout periods.
5️⃣ Ethical Awareness – Employees must recognize potential bias early.

Key Takeaways

Conflicts must be managed, not hidden.

Insider trading destroys market faith.

Ethics demand transparency over temptation.

Real-World Case
Martha Stewart (2001) was convicted for insider trading—an enduring lesson on separating personal gain from fiduciary duty.
Reference: https://www.sec.gov