Insider Trading Sanctions Act of 1984

Insider Trading Sanctions Act of 1984,

Definition of Insider Trading Sanctions Act of 1984:

  1. The U.S. Congress passed the Insider Trading Sanctions Act of 1984 in order to help the SEC prosecute those accused of insider trading, which was a top priority in the 1980s. Before the Act was passed the amount a trader could make through insider trading far outweighed the potential financial penalties.

  2. A House bill enacted in 1984 that laid out civil and criminal penalties for participating in an illegal insider trade.

  3. The Insider Trading Sanctions Act of 1984 is a piece of federal legislation that allows the Securities and Exchange Commission (SEC) to seek a civil penalty, of up to three times the amount of profit or loss, from those found guilty of using insider information in trades, as well those who provided information not generally available to the public. The Insider Trading Sanctions Act of 1984 also provides for criminal fines to be levied.

How to use Insider Trading Sanctions Act of 1984 in a sentence?

  1. Insider trading is trading based on non-public information (given or received) for financial gain, whether personal or through another entity.
  2. The Insider Trading Sanctions Act of 1984 allows the SEC to impose civil penalties on insider trading.
  3. Insiders are those close to a company that have knowledge about it that is not public information.

Meaning of Insider Trading Sanctions Act of 1984 & Insider Trading Sanctions Act of 1984 Definition