What Is a Trade Secret?

A trade secret is any corporate activity or procedure that is not widely recognized outside of the firm. Trade secrets are typically the result of internal research and development and provide the firm with a competitive advantage over its competitors.
A firm must make a reasonable attempt to keep the knowledge hidden from the public in order for it to be declared a trade secret in the United States; the secret must have inherent economic worth, and the trade secret must contain information. Trade secrets are a type of intellectual property that a corporation owns. A trade secret, unlike a patent, is not known to the general public.

Many people working in the capital market are only making money because they are stealing from their clients. If these clients stopped trusting these so called ‘experts’ they will cease to make money. The problem is that clients tend to follow them because of the perception that the experts have made huge gains in their personal portfolios. Little do they realize that its a transfer of money from them to these liars.