American Insider Trading Law
The United States has been the leading country in prohibiting insider trading made on the basis of material non-public information. Thomas Newkirk and Melissa Robertson of the U.S. Securities and Exchange Commission (SEC) summarize the development of US insider trading laws. Insider trading has a base offense level of 8, which puts it in Zone A under the U.S. Sentencing Guidelines. This means that first-time offenders are eligible to receive probation rather than incarceration.
Members of the US Congress are not exempt from the laws that ban insider trading, but as they generally do not have a confidential or fiduciary relationship with the source of the information they receive and accordingly, they do not meet the definition of an "insider."
Read more about this topic: Insider Trading
Famous quotes containing the words american, trading and/or law:
“What, to the American slave, is your Fourth of July? I answer: A day that reveals to him, more than all other days in the year, the gross injustice and cruelty to which he is the constant victim. To him your celebration is a sham.”
—Frederick Douglass (c.1817–1895)
“His farm was “grounds,” and not a farm at all;
His house among the local sheds and shanties
Rose like a factor’s at a trading station.”
—Robert Frost (1874–1963)
“The first law of story-telling.... Every man is bound to leave a story better than he found it.”
—Humphrey, Mrs. Ward (1851–1920)