A recent series of court decisions blurred the distinction between legal and illegal insider trading. These decisions will ultimately lead to worse outcomes for those charged with insider trading violations. What is insider trading? This conduct occurs when a person with access to non-public, material information takes that information and uses it to either buy…
Tag: insider trading
Insider Trading Regulation of Derivatives under SEC Rule 10(b)-5 and Dodd Frank
The SEC generally refers to illegal insider trading as “the act of buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.”1 Intuitively, many people feel insider trading is an unfair abuse of information asymmetries that allows…