Published on January 11
What is Insider Trading?
Insider trading is the trading of a corporation’s securities, such as stock, bonds, or stock options, by people who have access to non-public information about the company. Although generally thought of as criminal, certain types of insider trading are completely legal and in fact common. The Securities and Exchange Commission (“SEC”) is the government entity in charge of policing and prosecuting illegal acts of insider trading as well as creating rules to clarify what conduct is prohibited.
An “insider” is a person with access to “material” inside information – information that might affect the company’s stock price and/or …
Added in Banking & Finance, Helpful Business Info, US Laws
Published on January 7
What is the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act of 2002, also known as “SOA” or “SOX” is a congressional act with established a series of laws aimed at improving corporate governance, reducing corporate fraud, and eliminating deceptive accounting practice. The main provisions of Sarbanes-Oxley can be divided into three categories:
Accounting Oversight: One of the primary reforms of Sarbanes-Oxley was the creation of the Public Company Accounting Oversight Board.
Corporate Governance Reforms: Sarbanes-Oxley includes a series of reforms …
Added in Corporations, Large Corporation, US Laws
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