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)

insider trading

noun criminality, disclosure of connidential information, illegal disclosure, illegal use, illegal use of secret information, illegality, impropriety, infraction, infringement, misappropriate nonpublic information and material, prohibited use of confidential information, SEC violation, use of restricted information, violation of law
Associated concepts: Rule 10b-5, Securities Exchange Act

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Notes: This article is excerpted, with some changes, from Alan Strudler, "The Moral Problem in Insider Trading," The Oxford Handbook of Business Ethics, George G.

Insider trading: a moral problem

Whether we agree with Manne's arguments that insider trading ought to be deregulated for efficiency considerations, there is no doubt that his arguments are at the origin of the prolific debate that followed among lawyers, economists, financiers, and policy-makers.

Insider trading: is there an economist in the room?

Because there was no evidence of what Mickelson knew about Davis' motivations, Mickelson golfed away a possible charge for insider trading under the law of the Newman case.

Mickelson: golfing away insider trading

The "misappropriation theory" (49) is distinct from the "classical theory" of insider trading in which "a corporate insider .

"Look then to be well edified, when the fool delivers the madman": insider-trading regulation after Salman v. United States

As an integral part of a firm's compliance monitoring system, Insider Trading Manager monitors all of a firm's trading activity -- for its clients and its employees' accounts.

BasisCode releases insider trading software solution

On november 19, Sebi unveiled new insider trading norms which inherently put the onus on the accused to prove that they are not in possession of unpublished price sensitive information The new rules may appear stringent but it is an attempt by Sebi to assert its authority.

Safeguarding investors

It is now "far more difficult" for the government to prove its case on insider trading, and that will likely lead to fewer prosecutions, the judge said.

Prominent former judge says Second Circuit decision on insider trading may lead to fewer convictions, cases

Effective Strategies to Mitigate Risk of Insider Trading Liability

The Knowledge Group Has Scheduled a Live Webcast on Insider Trading: Updates and Strategies for 2014 and Beyond

Second, the use of the corporation as a vehicle for insider trading can lead insiders to waste economic resources.

Insider trading via the corporation

The settlement requires the firm to return USD10,082,725 that it earned from insider trading schemes, USD1,348,824 as prejudgement interest, and a penalty of USD10,082,725.

-Level Global agrees to pay USD21.5m as settlement against charges of insider trading

A lawsuit against Cohen filed by his ex-wife accusing him of insider trading in the 1980's was dismissed in 2011.

Hedge fund nabs Village building

However, in India, insider trading is not a criminal act and, more importantly, nobody has ever been jailed for it.