Insider Trading - RETIRED


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number



Overview/Description
Illegal insider trading is harmful to the marketplace. The ethical arguments against insider trading draw attention to the disparity of information between the two parties to the transaction, the violation of property rights, and the undermining of investors' confidence in the market. This course will provide examples of illegal insider trading and list the main provisions under law governing legal insider trading. It also discusses the civil and criminal penalties incurred by insider traders and the companies that they work for. It identifies the main procedures that companies should take to prevent insider trades generally and specifically during pension fund blackout periods. The main rules regarding the reporting of insider trading are also discussed. The guidance provided in this course is general in nature and is not intended to serve as guidance in specific situations. How insider trading rules apply to particular circumstances will depend upon the specific facts. This course is not a substitute for competent legal advice. Anyone concerned about potential insider trading issues should consult competent legal counsel. SkillSoft's Legal Compliance courses are developed and maintained with subject matter support provided by the Labor, Employment, and Employee Benefits Law Group of the law firm of Sheehan Phinney Bass + Green PA.

Target Audience
Managers, supervisors, employees

Expected Duration (hours)
1.5

Lesson Objectives

Introduction to Insider Trading

  • distinguish between legal and illegal insider trading.
  • match ethical arguments against insider trading to examples.
  • differentiate between legal and illegal actions according to key sections of applicable security laws.
  • match the forms insiders must complete to comply with trading rules, with examples of when each should be used.
  • recognize the information that must be completed on a Form 4 for a given scenario.
  • distinguish between penalties for illegal insider trading.
  • Preventing and Dealing With Illegal Insider Trading

  • identify how an effective compliance program can help to prevent illegal insider trading.
  • recognize the benefits of using a compliance program to prevent inadvertent illegal insider trading.
  • recognize the purpose of pension fund blackout periods under Section 306(a) of the Sarbanes-Oxley act.
  • recognize key concepts associated with protecting and rewarding those who report on insider trading.
  • Course Number:
    LCO0117