What is insider trading?

Insider trading is a white-collar crime that involves using confidential or private information that is not available to the public to make a financial gain. This type of trading is illegal because it gives those using the information a financial advantage over the public. In Tennessee, insider trading is a crime that is prosecuted under the Tennessee Uniform Securities Act (TUSA). TUSA defines insider trading as the purchase or sale of any security by a person who is in possession of material, nonpublic information regarding the security. Such information may include financial data, forecasts, product information, or other information that could affect the value of the security. It is also considered insider trading if a person communicates the confidential information to another person and that person then uses the information to purchase or sell a security. Insider trading is illegal because it gives those with access to confidential information a financial advantage over the public who does not have access to the same information. This unfair advantage can lead to market manipulation and unfair profits. Tennessee has criminal penalties for those who violate the state’s insider trading laws. Those found guilty of insider trading may face penalties such as fines, jail time, or both. Furthermore, those convicted of insider trading may also be subject to civil penalties, including disgorgement of profits, as well as other remedies.

Related FAQs

What is the difference between criminal conspiracy and white collar crime?
What is the difference between insider trading and market manipulation?
How is mail fraud committed?
How is computer fraud committed?
What are the penalties for health care fraud?
How is a criminal court different from a civil court?
What are the federal sentencing guidelines for white collar crimes?
How does the statute of limitations apply to white collar crimes?
Can white collar crime be prosecuted in state courts?
What are the defenses to criminal liability?

What is insider trading?

Related FAQs

Related Blog Posts