Article: Insider trading liability and enforcement strategy. (includes appendix)

On the grounds that insider trading undermines investor confidence in the fairness and integrity of the securities markets, the Securities and Exchange Commission (SEC) has made the detection and prosecution of illegal insider trading one of its enforcement priorities. To that end, the SEC has functioned both as the chief enforcer of the insider trading laws and as a powerful lobbyist behind new legislation to counter obstacles faced in prosecuting insider trading cases. This has provided the SEC with an unprecedented power not only to enforce the law but also to reshape it to fit its intended goal.

The restrictive regulatory environment and vigorous enforcement by ...

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