Explore the legal terms and concepts related to Federal Securities Laws. Click on any term below to learn more about its definition and applications.
What is the Sarbanes-Oxley (SOX) Act and when does it apply?
The Sarbanes-Oxley Act of 2002 applies to reporting companies, and requires them to establish indepe...
When does Section 16(b) (regarding Short Swing Profits) apply?
Section 16(b) applies to a reporting company's officers, directors, and shareholders who own more th...
When is a tippee liable?
A tippee is liable where the (1) the tipper breached their fiduciary duty, (2) the tippee knew or ha...
What is a misappropriator?
A misappropriator is a person who steals or converts material non-public information in violation of...
Under Rule 10b-5, when does someone commit insider trading?
A person commits insider trading where they (1) purchase or sell stock with (2) knowledge of materia...
What is Rule 10b-5 (regarding Anti-Fraud) and its elements?
Rule 10b-5 seeks to prevent fraud in connection with the purchase or sale of a security. The element...
What is a traditional insider?
A traditional insider is one connected to the issuer, including a shareholder, director, employee, o...
What is a tipper?
A tipper is a person who, in breach of his fiduciary duty, wrongfully tips inside information for a...
