Regulations & ConductPregunta 112 de 125

Trading securities on the basis of material, nonpublic information is prohibited as:

a.A permissible research edge
b.Legitimate market making
c.A form of best execution
d.Insider trading, which violates the antifraud provisions of the Exchange Act

Explicación

Using material nonpublic information to trade, or tipping others who trade, is insider trading and violates the antifraud provisions of the Securities Exchange Act of 1934 and related rules. Penalties can include disgorgement, civil penalties, and criminal prosecution.

Referencia Legal: Securities Exchange Act of 1934

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