Congress grapples with a useful definition of insider trading
Article Abstract:
Congressional desire for a more precise legal definition of insider trading in securities has resulted in The Insider Trading Proscription Act of 1987 (ITPA), which would, if enacted, be far more specific than the current proscription against using non-public data for personal gain. ITPA would prohibit direct or indirect theft or use of information that violates 'any fiduciary, contractual, employment, personal, or other relationship of trust and confidence'. ITPA eliminates employer liability for employee acts, provided that the company does not profit or otherwise gain from the illegal trading. Although ITPA would help define the crime of insider trading and possibly deter trading abuses, some fear that in defining insider trading, it would provide a blueprint for persons wishing to break the law by finding loopholes.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Treasury report heats up financial reporting concerns
Article Abstract:
An exposure draft of a report from the National Commission on Fraudulent Financial Reporting recommends tighter controls on both external and internal auditing of public companies and strong new enforcement powers for the SEC. Hidden among several constructive but somewhat bland Commission suggestions are some hard-hitting recommendations that would expand the roles of the SEC and the public accountant, and possibly add new regulations to the financial reporting process. The Commission report also emphasizes the importance of keeping public accounting firms strictly honest and accurate.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
User Contributions:
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