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Insider trading often comes with a long paper trail

There are many laws that people who work in a publicly traded company have to follow. These are meant to ensure that there isn't anything illegal going on that could harm shareholders or the general public. One of the actions that is forbidden is insider trading. This has to do with a person with intimate knowledge of a company using that information to make decisions about their own personally held shares in the company. It is also meant to prevent these individuals from passing their knowledge on to others who have shares.

Deal reached in massive Theranos securities fraud

Securities fraud can cost you time and money. In some cases, you might be stripped of voting rights and other duties that come with being involved in publicly traded companies. Elizabeth Holmes, founder of Theranos Inc., recently entered into a deal with the U.S. Securities and Exchange Commission (SEC) that has several implications for her future.

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