The Law on Insider Trading Lacks Needed Definition

13 Pages Posted: 20 May 2015

Date Written: May 18, 2015


Insider trading is not defined in the federal securities laws but is interpreted by the courts as a common law crime. This article argues that a statutory definition is needed, particularly in light of a recent Second Circuit case that narrows the breadth of cases recently prosecuted by the Securities and Exchange Commission and Department of Justice.

Keywords: insider trading, criminal prosecutions

Suggested Citation

Karmel, Roberta S., The Law on Insider Trading Lacks Needed Definition (May 18, 2015). Southern Methodist University Law Review, Forthcoming; Brooklyn Law School, Legal Studies Paper No. 413. Available at SSRN:

Roberta S. Karmel (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States
(718) 780-7946 (Phone)
(718) 780-0375 (Fax)

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