Richard Friedman
NEW! An often underappreciated danger that companies face is the risk that an executive or employee may violate corporate, tax, or securities law. 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.
Bruce Brumberg
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.
Darryl Rains and Sunil Kulkarni
Diversification and cash-flow needs may prompt you to sell company stock regularly. Yet SEC rules, company insider-trading policies, and fears of insider-trading allegations may make stock sales tricky. Rule 10b5-1 trading plans offer a potential solution, but they must be properly drafted and implemented.
Darryl Rains and Sunil Kulkarni
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.
Merrill Freed and Steven Schraibman
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.
Merrill Freed and Steven Schraibman
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. Part 1 focused on insider trading and Rule 10b5-1 plans. This article looks at other pitfalls of securities law, including short-swing-profits violations under Section 16(b), and required SEC filings, such as Form 4 and Form 144.
Bruce Brumberg
myStockOptions.com
Editor-in-Chief Bruce Brumberg developed this PowerPoint presentation for talks and meetings on insider trading. With colorful examples from recent cases, it covers fundamentals, penalties, Rule 10b5-1 preapproved trading plans, and lessons that the cases of Martha Stewart/ImClone and Joseph Nacchio/Qwest can teach. (Premium members can view the presentation in PDF from the above link and may request permission to use it at their companies. Please allow up to a minute for the presentation to ful
Julius Melnitzer
Inside Counsel
The SEC's intensified search for insider trading includes enhanced scrutiny of Rule 10b5-1 trading plans.
Bob Drummond
Bloomberg.com
A large volume of corporate acquisitions and well-timed investments in target companies has set off alarms about insider trading at the SEC and in stock exchanges around the world.
Jane Sasseen
BusinessWeek
Concerned about patterns of trades before bad news and abuses that signal insider trading, the SEC is looking into Rule 10b5-1 plans.
Return to top of page
Insider trading is illegal. It occurs when someone...
Tipping is telling someone material confidential information about a public company, whether in...
Insider trading and tipping violate the concept of fair capital markets...
Most insider-trading cases involve civil suits and penalties...
Anyone found liable for trading on inside information must pay the federal government...
Under Section 32(a) of the Securities Exchange Act, as amended by the Sarbanes-Oxley Act of 2002, individuals face up to...
Under Section 21A(e) of the Securities Exchange Act, the SEC may award...
To detect irregular patterns of trading, each stock exchange uses a surveillance operation...
The rules apply to any confidential, important information that you reveal to anyone about your company. The SEC adopted...
The SEC has reciprocal agreements with many countries...
Return to top of page
Insider Trading
Tax 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.
Test and improve your knowledge with our Insider Trading quiz and its study guide in the answer key.
Listen to the new podcast on the basics of SEC Law and Insider Trading!
Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Part 1): Company Stock Trades 
