What is the law on insider trading?

Insider trading is a term used to describe the buying or selling of a company’s stock by someone who has special knowledge of the company’s operations. It is illegal in Delaware and throughout the United States. This is because it gives the insider an unfair advantage over other investors, who do not have access to the same amount of information. Under Delaware law, it is illegal for any person with knowledge of nonpublic information related to the company to use it to trade for their own benefit. In addition to insider trading, Delaware law also prohibits tipping, which is the disclosure of nonpublic information to others who use it to trade ahead of the general public. Penalties for insider trading vary depending on the offense. However, the maximum penalty is imprisonment of up to 10 years, a fine of up to $1 million, and disgorgement of any profit made from the insider trading activity. It is also possible to face civil liability, which includes an injunction and disgorgement of any profits made from the illegal transactions. Insider trading can have serious consequences, so it is important to understand the rules and regulations around it. It is illegal for any person with knowledge of nonpublic information related to a company to use it for their own benefit. Therefore, it is important to familiarize yourself with Delaware’s laws and regulations around insider trading to ensure compliance with the law.

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What is the law on insider trading?

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