What are the legal restrictions on insider trading?

Insider trading is a type of illegal trading involving corporate insiders, such as officers, directors, and employees of a company. It is illegal to profit from trading on the stock market if one has access to confidential information about the company that is not available to the public. In Maryland, insider trading is regulated by the Securities and Exchange Commission (SEC). The SEC defines insider trading as trading stocks, bonds, or other securities while in possession of information that has not yet been disseminated to the public; or communicating information obtained in this way to other people. Insider trading is a violation of federal laws, and individuals and companies can be subject to charges of civil and criminal liability. The legal restrictions of insider trading in Maryland are as follows: 1. Corporate insiders, such as officers, directors, and employees, are prohibited from trading in the company’s securities before information is released to the public. 2. If corporate insiders possess information not available to the public, they must wait until the information has been made available to the public before they can use it to trade. 3. Corporate insiders must also report all trades they make in securities of the company they are employed by to the SEC within two days. 4. Directors or officers of public companies are prohibited from trading in the company’s stock while in possession of unpublished price sensitive information. 5. Corporate insiders must not attempt to manipulate the market by spreading false information about the company. Insider trading is a serious offense and is punishable by criminal and civil penalties. Anyone found to be in violation of insider trading laws could face charges of fraud, hefty fines, and even jail time. It is important for corporate insiders to comply with the laws governing insider trading in Maryland.

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What are the legal restrictions on insider trading?

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