Publication Date


Document Type


First Advisor

Norton, Curt

Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Accountancy


Illegal insider trading has become a growing problem in publicly traded companies. Although a statutory definition of insider trading is not provided in securities laws one has developed though the use of the Securities and Exchange Act of 1934 in landmark court decisions. Through these rulings "insiders" have become more clearly defined as well as the liabilities placed on them. In efforts to alleviate the growing problem of insider trading the SEC as well as public companies have established requirements in the handling of confidential company information and the trading of stock. The purpose of this paper is to more thoroughly examine the issue of insider trading and the resulting legal liabilities of the parties, provide the SEC requirements for stock transactions involving insiders and review what individual companies can do to combat illegal insider trading.


23 pages




Northern Illinois University

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In Copyright

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NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type