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Insider Trading Sanctions
Act Of 1984
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
An act that
increased the penalties against persons who profit from illegal use of
insider information. The
act allows the SEC to seek fines of up to three times the profits gained
or losses avoided by those insiders who improperly use material nonpublic
information. The act also
increases from $10,000 to $100,000 the criminal penalties for market manipulation,
securities fraud, and certain other violations.
The act does not define "material inside information"
or limit its prohibitions to corporate insiders.
Anyone who helps another person to violate the insider trading
rules can be held liable.
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