Course Details

Insider Trading

This course provides a comprehensive review of the law of insider trading. The focus is on Securities and Exchange Commission (SEC) and Department of Justice enforcement of the federal prohibition on insider trading, based primarily on the application of SEC Rule 10b-5. The course first reviews the common law background and current state law pertaining to trading by insiders. The course then turns to the development by the Supreme Court and lower courts of what does and what does not constitute unlawful trading based on, and tipping of, nonpublic information that is material to a securities transaction. Other topics include the special rule prohibiting trading based on material nonpublic information relating to tender offers and short-swing profit recovery from insiders under Securities Exchange Act Section 16(b). The course concludes with a review of the policy debate regarding prohibiting some or all insider trading, including proposed legislation. This course is given in alternate years with Securities Regulation Liability and Enforcement. That course covers some of the material covered here, in much less depth and breadth. Students who take this course may also take the liability and enforcement course.

Catalog Number: BUSCOM 718

Course History

Spring 2022
Title: Insider Trading
Faculty: Horwich, Allan (courses | profile)
Section: 1     Credits: 3.0
Capacity: 70     Actual: 26