SHADOW TRADING IN THE SPOTLIGHT.

  • Published In: Brief, 2024, v. 54, n. 1. P. 30 1 of 3

  • Database: Academic Search Ultimate 2 of 3

  • Authored By: Bezner, Hunter; Magee, Jessica B.; Kernisky, Allison 3 of 3

Abstract

The article discusses the U.S. Securities and Exchange Commission's (SEC) emerging theory of "shadow trading," a new form of insider trading enforcement that has raised concerns among corporate governance professionals. Shadow trading occurs when an insider uses material nonpublic information (MNPI) from one company to trade securities of another company that may be affected by that information. The SEC has successfully prosecuted cases under this theory, notably in the cases of SEC v. Panuwat and SEC v. Bechtolsheim, where defendants were found liable for trading based on insider knowledge that influenced the stock prices of related companies. The article emphasizes the need for companies to review their insider trading policies and compliance practices in light of this evolving legal landscape, as the SEC's interpretation of insider trading continues to expand. [Extracted from the article]

Additional Information

  • Source:Brief. 2024/10, Vol. 54, Issue 1, p30
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2024
  • ISSN:0273-0995
  • Accession Number:186361458
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