Insider trading can be a very big problem that is often avoidable

On Behalf of | Jul 5, 2017 | Securities |

Insider trading is criminal action that the Securities and Exchange Commission sometimes takes a harsh stance against. This is something that can easily be prevented, but it can also occur in some cases when you don’t even realize what is going on.

One thing that you have to remember is that you need to keep all information that could be construed as insider trading information private. Don’t share anything that could lead to someone doing something that can get you into trouble. You may think that you can trust someone; however, you should question whether they are worth having to face criminal charges for or not.

If you have insider information, take the time to find out what you can legally do with trades. You don’t want to do anything that might be construed as insider trading, so be careful with how you use the information you have regarding your own company or other companies that you hold stock in.

Be careful what you do with what you are told. There is always the chance that someone else is sharing information that could land you in prison for insider trading. Think carefully about how the information you have might be perceived by others.

The government has vast resources that it can use to find out about instances of insider trading. Make sure that you keep this in mind when you are working on your defense against insider trading. This is something that will take time because the evidence in these cases is usually vast. You need to have time to work through each point so that you can try to shore up your defense.

Source: FindLaw, “Do’s and Don’ts: Insider Trading,” accessed July 05, 2017

FindLaw Network