Image for Insider Trading and Securities Fraud Enforcement Act

Insider Trading and Securities Fraud Enforcement Act

The Insider Trading and Securities Fraud Enforcement Act is a law that aims to prevent unfair advantages in the stock market. It prohibits individuals with non-public, material information about a company from buying or selling its securities for personal gain. The law also enforces rules against fraud and deceit in securities transactions, ensuring transparency and fairness. Violating these rules can lead to serious penalties, including fines and imprisonment. Overall, it helps maintain trust and integrity in financial markets by stopping deceptive practices and ensuring all investors compete on an equal footing.