A Critical Analysis of Misappropriation Theory in Insider Trading Cases

1992 ◽  
Vol 2 (4) ◽  
pp. 465-477 ◽  
Author(s):  
Steven R. Salbu
Keyword(s):  
Insider Trading ◽  
Critical Analysis ◽  
Public Information ◽  
Fiduciary Duty ◽  
Securities Markets ◽  
Judicial Interpretation ◽  
Securities Law ◽  
Current Requirement ◽  
Fairness And Efficiency ◽  
Legislative Reforms

Under the present judicial interpretation of federal securities law, an individual is prohibited from trading on non-public information that has been misappropriated in contravention of a fiduciary duty. Trades made using non-public information that has not been misappropriated are not prohibited by Rule 10b-5, promulgated under the Securities and Exchange Act of 1934. The current requirement of misappropriation to trigger Rule 10b-5 liability creates a gap that permits transactions that are both ethically and economically undesirable. Judicial or legislative reforms are recommended to close the gap and help ensure the fairness and efficiency of securities markets.

scholarly journals A Global Comparison of Insider Trading Regulations

2013 ◽  
Vol 3 (1) ◽  
pp. 1 ◽  
Author(s):  
James H. Thompson
Keyword(s):  
Insider Trading ◽  
Public Information ◽  
Global Markets ◽  
Securities Markets ◽  
Business World ◽  
Global Comparison ◽  
The World

As the business world continues to expand in global markets, trading of shares, bonds, derivatives and other instruments continues to increase.  One form of trading that has received considerable interest in recent years is insider trading.  Insider trading occurs when individuals with potential access to non-public information about a corporation buy or sell stock of that corporation.  When the information is material and non-public, such trading is illegal.  However, if the trading is done in a manner that does not take advantage of non-public information, it is often permissible.  This study compares insider trading laws, penalties, and convictions in countries represented by the 14 largest securities markets throughout the world and provides data indicating that there are important differences.

Insider Trading

2021 ◽  
pp. 211-238
Author(s):  
Marc I. Steinberg
Keyword(s):  
Insider Trading ◽  
Developed Countries ◽  
The United States ◽  
Securities Markets ◽  
Securities Law ◽  
Corporate Insiders ◽  
Disparate Treatment ◽  
Advance Notice ◽  
The Subject ◽  
The U.S

This chapter addresses regulation of insider trading in the United States. Uncertainties and inconsistencies prevail in this setting resulting in disparate treatment for similarly situated actors. Other developed countries, while applying many principles of U.S. securities law to their securities markets, have rejected the U.S. approach in the insider trading context. To redress this situation, Congress should enact comprehensive legislation that meaningfully addresses the contours of the insider trading prohibition. Among other mandates, this legislation would: require corporate insiders to provide advance notice of their contemplated transactions in the subject company’s equity securities; bar corporate insiders and other access persons from trading in the subject company’s securities during the interval between the occurrence of a reportable event and the making of a SEC filing (such as a Form 8-K); close loopholes that currently exist with respect to the propriety of insider trading plans; and adopt a comprehensive access approach governing the legality of trading and tipping on the basis of material nonpublic information.

中國大陸內幕交易法介紹與刑事處罰實證研究：1997－2019

2021 ◽  
Vol 22 (22) ◽  
pp. 103-185
Author(s):  
林建中 林建中 ◽  
李揚 李揚
Keyword(s):  
Empirical Study ◽  
Insider Trading ◽  
Empirical Investigation ◽  
Criminal Cases ◽  
Relevant Research ◽  
Securities Law ◽  
Comprehensive Picture ◽  
The Law ◽  
The Relationship

內幕交易罪的處理，在證券法的發展歷史中，一直具有理論與實務上之重要意義。此一問題，在中國大陸相對初生但生猛且量體巨大的市場環境中如何被面對，從理論與比較法觀點，均具備特殊的研究價值。立法層面上，中國大陸法對於內幕交易的實體法構成，經二十多年的持續發展，已呈現出一定的複雜與完整面貌。然就執行層面視之，法院對於條文的理解與具體適用仍存在諸多爭議之處，同時，相關實證統計等資料的缺乏，也成為執行層面上對內幕交易罪研究的主要障礙之一。基於上述認識，本文立足於內幕交易刑事處罰執行層面的觀察，試圖呈現相關法律設計在中國大陸的司法實踐現狀。並通過1997年立法以來法院判決的實證研究，本文除一般性地檢驗內幕交易的執法情況外，同時針對法院在解釋犯罪構成上所呈現的爭議，進行進一步的評估。文中依照觀察面向的差異，特別鎖定三個重要的子議題：內幕信息的類型及其認定、被告「知悉」的司法判準、刑事處罰的比例性在內幕交易罪中的運用與體現。以上述實證研究結果為基礎，本文擬對於中國大陸內幕交易罪之司法執行效力提出評估，同時也補充性地可提供臺灣一定之參考。Insider trading has long been recognized as one of the key elements in modern securities law. As a massive but relatively young market, how China handles this issue is a topic rich in comparative value. On its face, the law and regulations prohibiting insider trading in securities transactions have already in place for more than two decades. However, their actual implementation, as well as how courts interpret the elements of insider trading offense in cases, are still obscure to outside observers. The lack of in-depth empirical investigation in its enforcement further creates an extra layer of complexity to the relevant research. Due to the problems mentioned above, this paper conducts an empirical study of the insider trading criminal cases, ranging from 1997 to 2019, to examine how insider trading cases are enforced in China. By observing the actual cases and their attributes, this paper presents a comprehensive picture of who commits insider trading law in China and how courts decide these cases. Three sub-set issues of the implementation are under special scrutiny:types of information and defendants; standard of proving defendant's scienter; and the relationship between sanction and illegal gain. Based on the results of this study, we evaluate the effectiveness of the enforcement on insider trading law in China in its first two decades of existence.

Vertical and Horizontal Problems in Financial Regulation and Corporate Governance

2018 ◽  
Author(s):  
Jonathan R. Macey ◽  
Maureen O'Hara
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Insider Trading ◽  
Financial Regulation ◽  
Fiduciary Duty ◽  
Federal Law ◽  
Regulatory Arbitrage ◽  
Holding Companies ◽  
The Third ◽  
And Control

This chapter discusses vertical and horizontal problems in financial regulation and corporate governance. More specifically, it examines three contexts in which efforts to mitigate systemic risk and moral hazard in capital markets and financial institutions clash with long-standing principles of corporate governance. The first issue relates to the so-called “vertical” challenge between financial institutions and the separately incorporated holding companies that own and control them. The second issue relates to the “horizontal” challenge, in which regulatory arbitrage occurs between the banking subsidiaries of complex holding companies and their less-regulated nonbank and shadow bank siblings. The third and final issue deals with the conflict between the conception of fiduciary duty in the federal law of insider trading and the concept of fiduciary duty in state law.

Ambiguity in Insider Trading Regulations: Saudi Arabia as a Case Study

2020 ◽  
Vol 34 (4) ◽  
pp. 408-427
Author(s):  
Yahya A. Alomari
Keyword(s):  
Saudi Arabia ◽  
Insider Trading ◽  
Public Information ◽  
Case Law ◽  
Insider Information ◽  
The Law ◽  
Definition Of ◽  
Criminal Conduct ◽  
Material Information

Abstract The Saudi legal system recognises insider trading as a crime and has established laws in order to prevent it. Yet, the complicated nature of insider trading makes it challenging to enact regulations that cover all of the aspects of the crime and clearly identify criminal conduct. This article analyses insider trading regulations in Saudi Arabia and addresses their ambiguities. This article specifies current Saudi regulations pertaining to the crimes of insider trading and disclosing material information, as well as analysing both crimes. It addresses ambiguities found in the language of the law as well as in case law. This article also criticises the definition of insider information under the law. The issue of ‘use’ versus ‘possession’ is discussed: namely, whether what is prohibited is trading on the basis of material non-public information or trading while in possession of material non-public information.

scholarly journals Critical Analysis of the Value of Drought Information and Impacts on Land Management and Public Health

Water ◽  
2020 ◽  
Vol 12 (4) ◽  
pp. 1064
Author(s):  
Tingting Liu ◽  
Kelly Helm Smith ◽  
Richard Krop ◽  
Tonya Haigh ◽  
Mark Svoboda
Keyword(s):  
Public Health ◽  
Land Management ◽  
Critical Analysis ◽  
Public Information ◽  
Weather Forecast ◽  
Economic Loss ◽  
Early Warning Systems ◽  
Economic Losses ◽  
Warning Systems ◽  
Bureau Of Land Management

This paper reviews previous efforts to assign monetary value to climatic or meteorological information, such as public information on drought, climate, early warning systems, and weather forecast information. Methods and tools that have been explored to examine the benefits of climatic and meteorological information include the avoided cost, contingent valuation, choice experiments, benefit transfer, and descriptive approaches using surveys. The second part of this paper discusses specific considerations related to valuing drought information for public health and the Bureau of Land Management. We found a multitude of connections between drought and the land management and health sectors in the literature. The majority of the papers that we summarized only report biophysical change, because the economic losses of drought are not available. Only a few papers reported economic loss associated with drought. To determine the value of drought information, we need to know more about the role it plays in decision making and what sources of drought information are used in different sectors. This inventory of methods and impacts highlights opportunities for further research in valuing drought information in land management and public health.

Sign in / Sign up

Export Citation Format

Share Document