The United States Law on Stock Market Insider Trading and Tipping

Abstract:     
This article is based on a lecture at Nihon College of Law in Tokyo and draws on William K.S. Wang & Marc I. Steinberg, Insider Trading (Oxford University Press 3d ed. 2010); and William K.S. Wang, Stock Market Insider Trading: Victims, Violators, and Remedies–Including an Analogy to Fraud in the Sale of a Used Car with a Generic Defect, 45 Villanova Law Review 27 (2000).

The article briefly discusses Rule 14e-3, the Rule 10b-5 classical relationship theory, the Rule 10b-5 misappropriation doctrine, the Rule 10b-5 liability of tippers and tippees, Rule 10b5-1, Rule 10b5-2, and Regulation FD.

Keywords: Insider Trading, Classical Relationship, Misappropriation, Tipper, Tippee, 10b5-1, 10b5-2, Regulation FD, 10b-5, 14e-3

JEL Classification: G18, G28, G38, K13, K14, K22

working papers series