insider trading

kobayashi · 02-14-2002, 09:41 PM

could anyone provide me with a good definition of this?
the incident in question involves a canadian broker dealing on the NYSE. i'm not sure if the definition is universal or regionally varied

any help would be appreciated.

------------------
don't.

sulawesigirl4 · 02-15-2002, 03:12 PM

no don't be. You saved me valuable minutes of search engine time.

kobayashi · 02-15-2002, 04:04 PM

please, none of you be sorry. i'm the one who should apologize: if i had known it would be that easy to find i totally could have done it myself. anyhoo thanks a lot

------------------
don't.

sulawesigirl4 · 02-16-2002, 02:40 AM

doh! I wish I could remember more from my scads of economics and finance classes. But from what I know, it is basically trading with inside knowledge of the company whose stock you are dealing with. Basically any knowledge that is not open to the public. That's a really broad definition and I know there is a lot more involved. I'll check around and see if I can be a bit more specific.

-sula

Screaming Flower · 02-16-2002, 02:44 AM

this is from the SEC website:

Question:

Where can I find rules, restrictions, and penalties for insider trading?

Answer: 11-19-01

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders, officers, directors, and employees, buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read our "Fast Answer" on Forms 3, 4, and 5.
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. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

When bringing insider trading cases, the SEC relies on Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. In those cases that involve mergers or acquisitions, the SEC may also rely on Rule 14e-3. These broad anti-fraud provisions make it unlawful for anyone to engage in fraud or misrepresentation in connection with the purchase or sale of a security. While they do not expressly refer to insider trading, courts have relied on these provisions in insider trading cases.

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 as one of its enforcement priorities. We recently adopted two new rules -- Rules 10b5-1 and 10b5-2 - that clarify when insider trading liability arises in connection with a trader's "use" or "knowing possession" of material nonpublic information and when the breach of a family or other non-business relationship may give rise to liability under the misappropriation theory of insider trading.

Section 21A of the Securities Exchange Act of 1934 sets forth the civil penalties for insider trading. Section 20A of the Exchange Act addresses private rights of actions based on contemporaneous trading.

To learn more about illegal insider trading, please read our "Fast Answer" on that topic . You may also want to read the release adopting Rules 10b5-1 and 10b5-2.

sulawesigirl4 · 02-16-2002, 02:46 AM

lol. n/m. What Screaming Flower said answers the question.

Screaming Flower · 02-16-2002, 02:49 AM

oops! sorry sula.

02-14-2002, 09:41 PM	#1
kobayashi Rock n' Roll Doggie VIP PASS Join Date: Aug 2001 Location: the ether Posts: 5,142 Local Time: 03:18 PM	insider trading could anyone provide me with a good definition of this? the incident in question involves a canadian broker dealing on the NYSE. i'm not sure if the definition is universal or regionally varied any help would be appreciated. ------------------ don't. __________________

02-15-2002, 03:12 PM	#2
sulawesigirl4 Rock n' Roll Doggie ALL ACCESS Join Date: Jul 2000 Location: Virginia Posts: 7,416 Local Time: 02:18 PM	no don't be. You saved me valuable minutes of search engine time. __________________

02-16-2002, 02:49 AM	#7
Screaming Flower ONE love, blood, life Join Date: Aug 2001 Posts: 11,961 Local Time: 02:18 PM	oops! sorry sula. __________________

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02-15-2002, 04:04 PM	#3
kobayashi Rock n' Roll Doggie VIP PASS Join Date: Aug 2001 Location: the ether Posts: 5,142 Local Time: 03:18 PM	please, none of you be sorry. i'm the one who should apologize: if i had known it would be that easy to find i totally could have done it myself. anyhoo thanks a lot ------------------ don't.

02-16-2002, 02:40 AM	#4
sulawesigirl4 Rock n' Roll Doggie ALL ACCESS Join Date: Jul 2000 Location: Virginia Posts: 7,416 Local Time: 02:18 PM	doh! I wish I could remember more from my scads of economics and finance classes. But from what I know, it is basically trading with inside knowledge of the company whose stock you are dealing with. Basically any knowledge that is not open to the public. That's a really broad definition and I know there is a lot more involved. I'll check around and see if I can be a bit more specific. -sula

02-16-2002, 02:44 AM	#5
Screaming Flower ONE love, blood, life Join Date: Aug 2001 Posts: 11,961 Local Time: 02:18 PM	this is from the SEC website: Question: Where can I find rules, restrictions, and penalties for insider trading? Answer: 11-19-01 "Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders, officers, directors, and employees, buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read our "Fast Answer" on Forms 3, 4, and 5. 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. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. When bringing insider trading cases, the SEC relies on Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. In those cases that involve mergers or acquisitions, the SEC may also rely on Rule 14e-3. These broad anti-fraud provisions make it unlawful for anyone to engage in fraud or misrepresentation in connection with the purchase or sale of a security. While they do not expressly refer to insider trading, courts have relied on these provisions in insider trading cases. 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 as one of its enforcement priorities. We recently adopted two new rules -- Rules 10b5-1 and 10b5-2 - that clarify when insider trading liability arises in connection with a trader's "use" or "knowing possession" of material nonpublic information and when the breach of a family or other non-business relationship may give rise to liability under the misappropriation theory of insider trading. Section 21A of the Securities Exchange Act of 1934 sets forth the civil penalties for insider trading. Section 20A of the Exchange Act addresses private rights of actions based on contemporaneous trading. To learn more about illegal insider trading, please read our "Fast Answer" on that topic . You may also want to read the release adopting Rules 10b5-1 and 10b5-2.

02-16-2002, 02:46 AM	#6
sulawesigirl4 Rock n' Roll Doggie ALL ACCESS Join Date: Jul 2000 Location: Virginia Posts: 7,416 Local Time: 02:18 PM	lol. n/m. What Screaming Flower said answers the question.