Insider Trading Sanctions Act Of 1984

A A A

DEFINITION

Legislation that allows the SEC to seek a civil penalty, of up to three times the amount of profit or loss, from those found guilty of using insider information in trades, as well those who provided information not generally available to the public. The Insider Trading Sanctions Act of 1984 also provides for criminal fines to be levied.



INVESTOPEDIA EXPLAINS

The U.S. Congress passed the Insider Trading Sanctions Act of 1984 in order to help the SEC prosecute those accused of insider trading, which was a top priority in the 1980s. Before the Act was passed, the amount a trader could make through insider trading, far outweighed the potential financial penalties.




RELATED TERMS
  1. Insider Trading Act of 1988

    An act enabled in 1988 to increase the liability penalties to all involved parties ...
  2. Whistleblower

    Anyone who has and reports insider knowledge of illegal activities occurring ...
  3. Insider Information

    A non-public fact regarding the plans or condition of a publicly traded company ...
  4. Insider Trading

    The buying or selling of a security by someone who has access to material, nonpublic ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities markets ...
  6. Banker Trojan

    A malicious computer program designed to gain access to confidential information ...
  7. Comprehensive Automated Risk Data ...

    The Comprehensive Automated Risk Data System (CARDS) is an initiative by the ...
  8. Baked In The Cake

    Projections, expectations and other news items that are already reflected in ...
  9. Hospital Visitation Authorization

    A document that indicates who is allowed to visit a patient in a hospital or ...
  10. WM/Reuters Benchmark Rates

    Spot and forward foreign exchange rates that are used as standard rates for ...
Related Articles
  1. Defining Illegal Insider Trading
    Economics

    Defining Illegal Insider Trading

  2. What Investors Can Learn From Insider ...
    Markets

    What Investors Can Learn From Insider ...

  3. Infamous Insider Traders
    Markets

    Infamous Insider Traders

  4. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  5. Keeping An Eye On The Activities Of ...
    Options & Futures

    Keeping An Eye On The Activities Of ...

  6. The SEC’s EDGAR System: Use It Fearlessly!
    Investing Basics

    The SEC’s EDGAR System: Use It Fearlessly!

  7. How The SEC Places Rules On Penny Stocks
    Investing Basics

    How The SEC Places Rules On Penny Stocks

  8. When, Why And How To File A Complaint ...
    Credit & Loans

    When, Why And How To File A Complaint ...

  9. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  10. What are the dangers of using the Electronic ...
    Taxes

    What are the dangers of using the Electronic ...

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center