insider trading


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insider trading

n. the use of confidential information about a business gained through employment in a company or a stock brokerage, to buy and/or sell stocks and bonds based on the private knowledge that the value will go up or down. The victims are the unsuspecting investing public. It is a crime under the Securities and Exchange Act, for which Ivan Boesky and others have been sentenced to prison for relatively short terms and only small fines, considering the percentage impact on their accumulated wealth. Joseph P. Kennedy, father of President John F. Kennedy, made much of his fortune in the 1920s by insider trading before it was a crime. When the Securities and Exchange Commission was created in the early days of the New Deal (1933), President Franklin D. Roosevelt appointed Kennedy to the Commission on the theory that it took an insider to catch insiders. (See: insider)

References in periodicals archive ?
The SEC further claimed that all the elements of insider trading were established during its investigation; thus, Ongpin was properly meted out the penalty of a P174-million fine for 174 counts of insider trading.
Yet, all these incidents cannot be taken as clear and direct indication that there was indeed insider trading,' it added.
In this Review, I will use Black Edge to highlight how the law's ambiguities limit the government's reach in pursuing insider trading. In particular, I will focus on how the knowledge requirement for securities fraud casts a shadow over the government's campaign against the hedge fund industry's never-ceasing quest for an informational advantage--"edge," be it white, gray, or black.
As per the documents, in major cases of insider trading and other offences under the exchange ordinance of 1969, action was taken against violators.
Studies testing public attitudes concerning insider trading have reflected more ambivalence than fear or indignation.
The "misappropriation theory" (49) is distinct from the "classical theory" of insider trading in which "a corporate insider ...
However, traders watch closely for changes in patterns or unusual insider trading activity.
Avent and Penna each previously settled insider trading charges brought against them.
Insider trading is the illegal practice of buying and selling stocks by individuals who have access to insider information or "material nonpublic information" about the securities.
MANILA, Philippines Insider trading remains a prevalent crime in the Philippines.
The board is scheduled to meet tomorrow to discuss a proposal by a high level committee, which suggested that the regulator should seek powers from the government to intercept calls and electronic communications of those suspected of serious economic offences like insider trading. The committee, headed by former law secretary and Lok Sabha's ex-secretary general T K Viswanathan, also suggested mandatory whistle-blower policy at listed companies and a series of changes in rules on market frauds, insider trading, surveillance and investigations.