Beginner guide to identify potential insider trading
Must Know information
-The Facts Behind Insider Trading-
Key points:
1.) Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA) The integrity of our industry requires that all investors have access to the same information when making trading decisions.
2.) Using information not available to the public to profit or avoid a loss is one of the most serious violations in the industry because it undermines its integrity.
3.) Although the Securities Exchange Act of 1934 prohibited the use of insider information in making trades, the (ITSFEA) expanded penalties for insider trading and securities fraud.
4.) An insider is any person who has access to nonpublic information about a company. Inside information is any material information that has not been disseminated to, or is not readily available to , the general public.
5.) The act prohibits insiders trading on or communicating nonpublic information.
6.) Both tippers ( the person who gives a tip) and tippees (the person who receives a tip) are liable, as is anyone who trades on this information that he knows or should know is not public or has control over the misuse of this information.
7.) No trade need be made for a violation to occur; even a personal benefit of a non-financial nature could lead to liability under the rules.
So, the key elements of liability under insider trading rules are as follows:
1.) Does the tipper owe a fiduciary duty to a company/its stockholders? Has he breached it?
2.) Does the tipper meet the personal benefits test ( even something as simple as enhancing a friendship or reputation)?
3.) Does the tippee know or should the tippee have known that the information was inside or confidential?
4.) Is the information material and nonpublic? Take Note: Even a slip of the tongue by a corporate insider could create liability under these rules.
The SEC ACT of 1934 defines an insider as an officer,director,or stockholder owning more than a 10% of a company's outstanding voting equity.
Im proud of you if you read through all of this much needed info :)
$Bed Bath & Beyond Inc(BBBY.US$ $Lm Funding America(LMFA.US$ $Ocugen(OCGN.US$ $Bionano Genomics(BNGO.US$ $iSpecimen(ISPC.US$ $Aditxt(ADTX.US$ $Meten(METX.US$
-The Facts Behind Insider Trading-
Key points:
1.) Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA) The integrity of our industry requires that all investors have access to the same information when making trading decisions.
2.) Using information not available to the public to profit or avoid a loss is one of the most serious violations in the industry because it undermines its integrity.
3.) Although the Securities Exchange Act of 1934 prohibited the use of insider information in making trades, the (ITSFEA) expanded penalties for insider trading and securities fraud.
4.) An insider is any person who has access to nonpublic information about a company. Inside information is any material information that has not been disseminated to, or is not readily available to , the general public.
5.) The act prohibits insiders trading on or communicating nonpublic information.
6.) Both tippers ( the person who gives a tip) and tippees (the person who receives a tip) are liable, as is anyone who trades on this information that he knows or should know is not public or has control over the misuse of this information.
7.) No trade need be made for a violation to occur; even a personal benefit of a non-financial nature could lead to liability under the rules.
So, the key elements of liability under insider trading rules are as follows:
1.) Does the tipper owe a fiduciary duty to a company/its stockholders? Has he breached it?
2.) Does the tipper meet the personal benefits test ( even something as simple as enhancing a friendship or reputation)?
3.) Does the tippee know or should the tippee have known that the information was inside or confidential?
4.) Is the information material and nonpublic? Take Note: Even a slip of the tongue by a corporate insider could create liability under these rules.
The SEC ACT of 1934 defines an insider as an officer,director,or stockholder owning more than a 10% of a company's outstanding voting equity.
Im proud of you if you read through all of this much needed info :)
$Bed Bath & Beyond Inc(BBBY.US$ $Lm Funding America(LMFA.US$ $Ocugen(OCGN.US$ $Bionano Genomics(BNGO.US$ $iSpecimen(ISPC.US$ $Aditxt(ADTX.US$ $Meten(METX.US$
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OFFICER TRUTHOP : Wow thank you for all the like everyone! A lot of my content is formatted that way So I guess I’ll just start unloaded all my files onto here. Any requests?
jurel : woooww,,this is awesome, but whats the point here.