What law governs insider trading

What law governs insider trading - market. Why is it so...

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What law governs insider trading? Who is considered to be an insider? What types of activities  are prohibited? Insider trading have both legal and illegal aspects. The legal part is when employees of a company buy and sell stocks of the company. The illegal part is when the buying and the selling is done while having information about the stocks that is not public yet. I believe that is what happen to Martha Stewart. The law that governs insider trading is Securities and Exchange Commission. An insider is consider to be anyone that has information about the company’s stock. The prohibited activities are to tip other employees or to buy or sell the stock because they have privilege information. They know when the stock is going up or down before the rest of the
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Unformatted text preview: market. Why is it so important that we have prohibitions on insider trading? Is more than fairness at issue? Can anyone see any arguments why insider trading should not be illegal? It is important to have prohibitions, because the employee that has the privilege information about the value of the stock can sell or buy before the information gets out in the market, or sell this information for a profit. Yes it should not be illegal, the employees should have an opportunity to make money on the stocks for the company they work for. Just make sure that the information is supervised and no purchases or sales are allowed until the value is listed in the market....
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