Affiliation:
1. California State University, Northridge, USA
Abstract
The purpose of this chapter is to explore the basis and scope of civil and criminal liability for insider trading under the federal securities laws of the United States. Insider trading involves the use of non-public corporate information by those with access to it in order to trade in the corporation's securities. Such conduct involves a breach of the insider's fiduciary duty of confidentiality and is considered to be a form of fraud in the market as well. In addition, others to whom inside information has been disclosed and who trade on it may face liability. In its overall approach, the chapter reviews and illustrates these issues through a discussion of key cases and with reference to regulations issued by the US Securities & Exchange Commission.
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