In late December, the Securities and Exchange Commission announced proposed rulesto address two controversial issues concerning insider trading. [FOOTNOTE 1]In the proposed rules, the commission addresses the question of whether the purchase or sale of a security in knowing possession of inside information alone violates the insider trading prohibitions or whether the government must show that the trader “used” the information in connection with the purchase or sale. The SEC also seeks to clarify the application of the “misappropriation” theory in the context of family and personal relationships. Both of the proposed rules are likely to have significant impact on this important and evolving area of the federal securities laws.


This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]