Insider Trading

Any employee can violate insider trading rules if they learn of ‘material, nonpublic information’ and trade, based on that information. This can tarnish an organization’s reputation, and threaten the future profitability of a company. It can also pose a legal risk to a company, exposing it to disruptive and expensive investigations that can lead to significant fines and penalties. Employees may inadvertently violate insider trading laws if they do not receive training on how to comply with its nuances.