DEFINITION of 'Insider Trading Sanctions Act Of 1984'

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.

BREAKING DOWN 'Insider Trading Sanctions Act Of 1984'

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.

  1. Insider Information

    Insider information is a non-public fact regarding the plans ...
  2. Insider

    A director or senior officer of a company, as well as any person ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Inside Market

    The inside market is the spread between the highest bid price ...
  5. Form 3

    A document that must be filed with the Securities and Exchange ...
  6. Form 5

    A document that must be filed with the Securities and Exchange ...
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