1. 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, while in possession of material, nonpublic information about the security. Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations ... managers and shareholders, a blanket prohibition on trading by insiders is unlikely to be advantageous to all firms. Firms that wish to prohibit insider trading can do so b...
- Word Count: 1526
- Approx Pages: 6
- Grade Level: Undergraduate