What are the legal restrictions on insider trading?

Insider trading is a form of illegal activity that occurs when someone uses information that has not been made available to the public in order to gain a financial advantage. In Texas, insider trading is restricted and punishable by law. Under Texas law, individuals or businesses must not use confidential information or information not available to the public in order to make a financial decision. People who have access to insider information are prohibited from using that information to make financial trades for their own personal gain. Additionally, business entities in Texas are prohibited from using confidential information to gain an unfair economic advantage over other businesses. For example, a company may not use insider information to acquire another company’s assets or to gain a controlling interest in the stock market. Business entities in Texas are also required to disclose information about insider trades to the Securities and Exchange Commission. This information must be made available to the public in order to promote fairness and transparency. Insider trading is a serious violation of the law that could result in criminal charges and fines. Individuals or businesses found to be in violation of insider trading laws may face civil or criminal charges. In Texas, individuals who violate insider trading laws may face fines of up to $250,000 and imprisonment of up to 10 years.

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What are the legal restrictions on insider trading?

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