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:
“I am firmly opposed to the government entering into any business the major purpose of which is competition with our citizens ... for the Federal Government deliberately to go out to build up and expand ... a power and manufacturing business is to break down the initiative and enterprise of the American people; it is the destruction of equality of opportunity amongst our people, it is the negation of the ideals upon which our civilization has been based.”
—Herbert Hoover (18741964)
“His farm was grounds, and not a farm at all;
His house among the local sheds and shanties
Rose like a factors at a trading station.”
—Robert Frost (18741963)
“The great King of kings
Hath in the table of his law commanded
That thou shalt do no murder. Will you then
Spurn at his edict, and fulfill a mans?
Take heed; for he holds vengeance in his hand
To hurl upon their heads that break his law.”
—William Shakespeare (15641616)