Search
Go to the myStockOptions.com homepageTrack your stock options, restricted stock, and SARsCalculators and modeling toolsBookmark your favorite contentView and manage your client list
Tax Center Global Tax Newsletter Glossary Discussion About MSO Home Sign In Register

SEC Law: Insider Trading
Print this FAQ
Why are insider trading and tipping illegal?
Insider trading and tipping violate the concept of fair capital markets because a bearer of secret inside information who trades on it has an advantage that other investors do not. Stock markets would lose credibility if a few privileged investors had stock-trading advantages over the huge population of ordinary investors; and if those ordinary investors felt the markets were unfair and abandoned them, the economic consequences would be dire for everybody.

Furthermore, illegal trades often involve important information that was stolen or passed to others in clear violation of company rules and fiduciary duties.
Prior FAQ in list Return to list Next FAQ in list
   SEC Law   
Basics   
Insider Trading   
Rule 10b5-1 Trading Plans   
Rule 144   
Section 16   

Insider Trading
Prevent insider trading at your company with the effective Think Twice videos, which educate, entertain, and jolt
NEW! Need a financial, tax, or legal advisor?
Search AdvisorFind from myStockOptions.com
myTools
MyRecords FREE!
Quick-Take Options Calculator FREE!
Quick-Take Restricted Stock Calculator
Quick-Take SARS Calculator
I Need The Money Calculator
Options & SARs Comparison Modeling Tool
Restricted Stock Comparison Modeling Tool NEW!
Scenarios
myAlerts

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.


Home |  My Records |  My Tools |  My Library
Tax Center |  Global Tax |  Newsletter |  Glossary |  Discussion | About Us
Corporate Customization | Licensing |  Sponsorships |  User Agreement |  Privacy |  Sitemap

The content is provided as an educational resource. myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2010 myStockPlan.com, Inc. United States Patent 7,353,200.
myStockOptions.com is a federally registered trademark. Please do not copy or excerpt this information
without the express permission of myStockOptions.com. Contact editors@mystockoptions.com for licensing information.