Insider Trading Research Paper Topics - Understanding Securities Laws

Insider Trading Research Paper Topics - Understanding Securities LawsInsider trading is defined as 'discovered insider information'. In the United States, there are currently twelve federal statutes that address this type of activity. These statutes are considered civil offenses, and they carry a penalty of up to five years in prison. By following the advice provided in these Insider Trading Research Paper Topics, you can protect yourself from possible prosecution and win back any profits you may have lost.Securities laws provide comprehensive disclosure requirements. Each stock market has specific disclosures that must be included with every stock trade. Some of these disclosures are very detailed and precise. Other kinds of disclosures include, but are not limited to: information about the company, product, or service being traded, the prices and volumes of that product or service being traded, the history of the company, other companies that are publicly traded, and so on.There ar e also specific articles in the legal code that are designed to protect investors. These regulatory articles do not provide an absolute guarantee of protection, but they can help protect against various acts of fraud and other illegalities. Several federal laws that protect investors also apply to transactions between two brokerage firms, and to non-brokerage firms.There are also several types of shares and units that may be owned by the public. When a company goes public, a specific public offering is made that allows the company to sell shares at a set price. The proceeds from the sale of these shares are returned to shareholders, at which time they are known as 'dividends'.Another kind of share is the 'Security' that is associated with government securities. To purchase a Security, an investor must first buy the right to hold the ownership of that Security, or 'in-kind' right. In-kind rights can only be sold, however, once the entire ownership interest has been purchased. In some cases, aholder of the right to buy a Security may be required to pay a fee if he chooses to not buy.There are also 'dividends', 'shares', and 'units' that are registered in the name of the corporation or partnership that owns the shares or units. A corporation has stockholders, and a partnership has partners. Both types of organizations can be subject to Securities laws. The investor must understand and follow the rules and regulations, and must know that if he violates the law, he could be found guilty of a criminal offense and possibly face prison time.It is important to know that even shares and units that have not been bought and sold that are registered in the name of the corporation or partnership that owns them may still be subject to these laws. Many of these securities have no practical purpose in the eyes of the SEC regulations. They are not traded, they are not used for business purposes, and no one buys or sells them for their investment value. In fact, many times, thes e types of securities will be purchased by insiders who want to make money by selling them to the public.An insider trading researcher should always remember to consult with the SEC before researching any particular share or unit. Furthermore, he should understand that the SEC may ask for additional information before issuing a ruling on any particular matter.