Insider Trading via the Corporation — The Harvard Law School Forum on Corporate Governance

Small business of-interest and need-to-know.

Excerpt:  When a U.S. firm trades in its own shares, its trade-disclosure requirements are minimal. The firm must report only aggregate trading activity, and not until well into the following quarter. Thus, the firm can secretly buy and sell its own shares in the open market for several months, and never disclose the exact details of its trades to shareholders and regulators. The lack of detailed disclosure, I explain, makes it difficult to detect illegal trading on material inside information; the lack of timely disclosure makes it difficult for investors to determine when the firm is trading on valuable but sub-material information.

The trade-disclosure requirements imposed on U.S. firms are much more lax than those imposed on many firms abroad

Read full article via Insider Trading via the Corporation — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

Advertisements

Comments Off on Insider Trading via the Corporation — The Harvard Law School Forum on Corporate Governance

Filed under Small Business

Comments are closed.