Dec 12, 2018
The rules surrounding insider trading and securities violations
are extensive and can be complicated. In order to determine if an
executive selling or buying stock in their own company or if a
company member trading on information provided to them, either
directly or indirectly, is acting appropriately, it’s important to
become familiar with the securities rules.
Joining me on the podcast to shed light on this topic is Sarah
Aberg, an attorney in Sheppard Mullin’s New York office. Sarah’s
practice encompasses securities regulation, compliance, and
litigation as well as internal investigations and white collar
What We Discuss in this Episode:
- Who is considered an “insider” for insider trading
- The two key statutes to be aware of when it comes to securities
- How does a court determine if a person is engaged in insider
- Why is there a restraint on executives trading on information
that has not been disclosed to the public? What effect does that
have on the market?
- Do insider trading rules only apply to public companies or do
they apply to private companies as well?
- When a tippee receives insider information and acts on it,
should he/she be liable for insider trading? How is that
determination made by the court?
- What is 18 U.S. Code Section 1348 and how does it allow for
criminal violations of insider trading rules?
- Along with knowing federal securities fraud statutes, it’s also
important to be familiar with state statutes
- What happened in the Equifax data breach and what can
executives learn from the incident?
- How can companies prevent and control for insider trading?
- What are short swings and how do they affect an insider’s
ability to buy or sell shares within a certain time period?
- What are Rule 10b5-1 plans and how do they protect
Dirks v. SEC (1983)
United States v. Newman
United States v. Martoma
Salman v. United States
SEC Rule 10b-5
Sarah’s Sheppard Mulling attorney profile
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This podcast is for
informational and educational purposes only. It is not to be
construed as legal advice specific to your circumstances. If you
need help with any legal matter, be sure to consult with an
attorney regarding your specific needs.