NCJ Number
140682
Journal
Journal of Crime and Justice Volume: 15 Issue: 2 Dated: (1992) Pages: 111-137
Date Published
1992
Length
27 pages
Annotation
This examination of insider trading assesses the rationale of laws and administrative policies designed to deter insider trading in the United States, identifies the persons at whom these policies are aimed, and evaluates their overall success.
Abstract
Available empirical research identifies the ineffectiveness of anti-insider trading policies in realizing their deterrence objective. In fact, insider trading continues and possibly has increased. The continuation of insider trading activities can be attributed to two factors: trading based on insider information is very profitable, and there is little likelihood of apprehension as an outsider-insider; and the Supreme Court has failed to provide a consistent opinion on the matter which leaves many loopholes for market professionals and attorneys to sidestep anti-insider trading laws. Existing SEC regulations prove ineffective in deterring outside-insiders or shifting techniques for obtaining the benefits accrued by inside-insiders. It is necessary to explore alternative strategies that make the prospects less lucrative. 15 footnotes, 5 figures, 1 table, and 48 references