Insider Trading

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• Notorious Insider Trading Cases: Wiggin, Boesky, Winans, and ...

  Insider trading occurs when someone buys or sells a publicly traded company’s stock using nonpublic, material information. The Securities and Exchange Commission (SEC) investigates these cases to maintain fair markets. Detecting insider trading can be challenging, but it often involves well-known figures and draws media attention. This article highlights four notable cases: Albert H. Wiggin after the 1929 crash, Ivan Boesky’s 1980s scandal, WSJ columnist R. Foster Winans, and Martha Stewart’s [...] Insider trading happens when someone buys or sells a company’s stock using confidential, non-public information. This makes it illegal, but often difficult to detect, especially in high-profile cases that attract media attention. Notable examples include Albert H. Wiggin, Ivan Boesky, R. Foster Winans, and Martha Stewart, all of whom drew significant public and media scrutiny. Article Sources [...] Insider trading is not always illegal. "Insiders" who are part of the company whose stock they own are allowed to trade that stock. However, trading by insiders becomes illegal when they make their trades based on information that is not publicly available to all investors. ## How Do People Get Caught Insider Trading?

• Insider Trading - Econlib

  Insider trading” refers to transactions in a company’s securities, such as stocks or options, by corporate insiders or their associates based on information originating within the firm that would, once publicly disclosed, affect the prices of such securities. Corporate insiders are individuals whose employment with the firm (as executives, directors, or sometimes rank-and-file employees) or whose privileged access to the firm’s internal affairs (as large shareholders, consultants, accountants, [...] Insider trading is quite different from market manipulation, disclosure of false or misleading information to the market, or direct expropriation of the corporation’s wealth by insiders. It also should be noted that transactions based on unequally distributed information are common and often legal in labor, commodities, and real estate markets, to name a few. Nevertheless, many people still find insider trading in corporate securities objectionable. One objection is that it violates the [...] Manne, Henry G. “Insider Trading and Law Professors.” Vanderbilt Law Review 23 (1970): 547–590. Maug, Ernst. “Insider Trading Legislation and Corporate Governance.” European Economic Review 46 (2002): 1569–1597. Mendelson, Morris. “The Economics of Insider Trading Reconsidered.” University of Pennsylvania Law Review 117 (1969): 470–492. Meulbroek, Lisa K. “An Empirical Analysis of Illegal Insider Trading.” Journal of Finance 47 (1992): 1661–1699.

• Insider Trading

  Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. Examples of insider trading cases that have been brought by the SEC are cases against: [...] Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments; Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

• Insider trading

  In the United States, Canada, Australia, Germany and Romania for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors and any beneficial owners of more than 10% of a class of the company's equity securities. Trades made by these types of insiders in the company's own stock, based on material non-public information, are considered fraudulent since the insiders are violating the fiduciary duty that they owe to the shareholders. The corporate insider, [...] Insider trading is the trading of a public company's stock or other securities "Security (finance)") (such as bonds "Bond (finance)") or stock options "Option (finance)")) based on material, nonpublic information about the company. In many countries, some kinds of trading based on insider information are illegal. The rationale for this prohibition of insider trading differs between countries and regions. Some view it as unfair to other investors in the market who do not have access to the [...] Trading by specific insiders, such as employees, is commonly permitted as long as it does not rely on material information not available to the general public. Many jurisdictions require that such trading be reported so the transactions can be monitored. In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of

• Insider Trading Policy - SEC.gov

  Insiders may be liable to the Company under Section 16(b) of the Securities Exchange Act of 1934, as amended, for any “profit” realized as a result of any purchase followed by a sale, or sale followed by a purchase, of the Company’s stock within any period of less than six months. There is no “tracing” of shares for these purposes. Any sale made by an Insider may be matched against any purchase made within the statutory period, and the transactions will be matched in such a way as to maximize [...] The term “insider trading” refers to the use of nonpublic material information both in trading securities or in passing on or “tipping” such information to others. As a result, in addition to refraining from trading for your own account while you are aware of nonpublic material information, you are prohibited from engaging in any other action to take advantage of, or to communicate to others (_“tip”_), such information. An Insider who tips information to a person who then trades is subject to [...] SEC Rule 10b-5 prohibits corporate officers and directors or other insider employees from using confidential corporate information to reap a profit (or avoid a loss) by trading in the Company’s stock. This rule also prohibits “tipping” of confidential corporate information to third parties. ·Who is an insider?

• Instance Of

  Q7889