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Trade Secret: Definition, Example and Related Terms

What is a Trade Secret ?

A trade secret is something very special that a company knows and uses but doesn't want anyone else to know about. It's like a magic trick that a magician keeps secret to surprise people.


  • A famous restaurant might have a special ingredient in their burger sauce that makes people come back for more.
  • A video game company might have a unique way they make characters look super real that other companies haven't figured out.
  • A makeup brand has a special formula for their lipstick that stays on all day and they don't want their competitors to copy it.