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SEC Law

Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.


SEC Law

In SEC Law, learn how to avoid insider trading with stock grants and how to comply with other securities laws.

Basics and Insider Trading cover the fundamental securities law that pertains to anybody who owns stock. Rule 10b5-1 Trading Plans explains the prearranged trades you can create to minimize your risk of insider-trading violations. Executives and directors must know the requirements discussed in Rule 144 and Section 16.

Selected Articles

Insider Trading

Prevent A Martha Stewart Moment: Insider Trading In Your Company's Stock

It is all too easy to forget the insider-trading rules if you suddenly see a chance to profit or avoid loss through a simple stock trade. The well-publicized case against TV celebrity Martha Stewart presents valuable lessons that are more important than ever in our age of stock market volatility and Wall Street scrutiny.
Basics

The Equity Compensation Planning Dilemma For Corporate Executives This is premium content

Podcast included! Executives must carefully balance the demands of many constituencies interested in their company's stock. Explores ways to manage these pressures while achieving financial goals.
Basics

Ten Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Part 1): Company Stock Trades This is premium content

Podcast included! An often underestimated danger companies face is the risk that an executive or employee may violate corporate, tax, or securities laws. This article series outlines practices for executives to help them avoid compliance problems, and explains the possible penalties of noncompliance. Part 1 focuses on compliance issues involving company stock holdings and transactions.
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Rule 10b5-1 Trading Plans

How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 1) This is premium content

SEC rules, company insider-trading policies, and fears of insider-trading allegations may make stock sales tricky for corporate insiders. Rule 10b5-1 trading plans offer a potential solution, but they must be properly drafted and implemented.
Rule 10b5-1 Trading Plans

How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 2) This is premium content

A Rule 10b5-1 trading plan is an ideal solution when SEC regulations and corporate insider-trading policies would otherwise keep you from selling your shares. However, to be effective these plans must be properly implemented. Part 2 explores their restrictions and flexibility, and how to disclose them.
Rule 10b5-1 Trading Plans

How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 1) This is premium content

Your advisors say now is the time to buy or sell your company stock or to exercise options. But before you proceed, you'd better understand the securities laws that apply. Otherwise, you risk losing your profits, paying big fines, attracting unwanted media attention, and perhaps even going to jail. The storm of controversy over the backdating of stock option grants shows how closely executive stock sales are scrutinized.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Insider Trading

What is insider trading? Do you have to be an "insider" or executive to commit it?

Insider trading is illegal. It occurs when someone...
Insider Trading

What is insider tipping?

Tipping is telling someone material confidential information about a public company, whether in...
Insider Trading

Why are insider trading and tipping illegal?

Insider trading and tipping violate the concept of fair capital markets...
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Insider Trading

How do civil and criminal insider-trading cases differ?

Most insider-trading cases involve civil suits and penalties...
Insider Trading

What are the civil penalties for insider trading?

Anyone found liable for trading on inside information must pay the federal government...
Insider Trading

What are the criminal penalties for insider trading?

Under Section 32(a) of the Securities Exchange Act, as amended by the Sarbanes-Oxley Act of 2002, individuals face up to...
Insider Trading

Will the SEC really investigate and prosecute small insider-trading violations? This is premium content

When irregular trading activity is detected in a company's stock, all transactions made during the period under review are scrutinized...
Insider Trading

Can I receive a bounty for providing information about someone who has committed insider trading?

Under Section 21A(e) of the Securities Exchange Act, the SEC may award...
Insider Trading

Aren't my stock-trading records confidential? How could the stock exchanges and the SEC get them and other information about me? This is premium content

To detect irregular patterns of trading, each stock exchange uses a surveillance operation...
Insider Trading

Do the rules of insider trading and tipping apply only in business contexts? Do they also apply to what I tell friends and family? This is premium content

The rules apply to any confidential, important information that you reveal to anyone about your company. The SEC adopted...
Insider Trading

Does it matter whether the person who violates the insider-trading laws lives outside the US? This is premium content

The SEC has reciprocal agreements with many countries...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.