Open AccessA Global Comparison of Insider Trading Regulations
Author(s) -
James H. Thompson
Publication year - 2013
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v3i1.3269
Subject(s) - insider trading , alternative trading system , business , corporation , trading turret , insider , stock (firearms) , electronic trading , public information , accounting , open outcry , algorithmic trading , financial economics , finance , economics , law , public relations , political science , mechanical engineering , engineering
As the business world continues to expand in global markets, trading of shares, bonds, derivatives and other instruments continues to increase. One form of trading that has received considerable interest in recent years is insider trading. Insider trading occurs when individuals with potential access to non-public information about a corporation buy or sell stock of that corporation. When the information is material and non-public, such trading is illegal. However, if the trading is done in a manner that does not take advantage of non-public information, it is often permissible. This study compares insider trading laws, penalties, and convictions in countries represented by the 14 largest securities markets throughout the world and provides data indicating that there are important differences