What is the law on insider trading?

In Virginia, insider trading is a form of fraud that is illegal in the United States. It occurs when someone in a position of trust, such as a corporate executive or a corporate insider, uses confidential information to buy or sell securities for their own personal gain. Virginia laws state that it is illegal to use confidential information to buy or sell securities for personal gain. These laws also include sharing or trading on the basis of confidential information in a manner that is reasonably believed to be inconsistent with the obligations of a fiduciary. Insider trading also includes tipping, which occurs when someone in a position of trust provides non-public information to others who then use the information to buy or sell securities. If a corporate insider is found guilty of insider trading, they can face civil penalties such as fines, disgorgement (repayment) of profits, restitution (payment) of any losses and injunctive relief (barring from future stock market activities). In some cases, criminal charges may be brought against an individual found guilty of insider trading. The Virginia State Securities Commission, as well as the U.S. Securities and Exchange Commission, are both responsible for investigating and enforcing insider trading regulations. The penalties for insider trading violations can be very serious, so it is important to understand these laws and comply with them.

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What is the law on insider trading?

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