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ITSFEA

   Also found in: Acronyms 0.01 sec.
See Insider Trading & Securities Fraud Enforcement Act of 1988.
Insider Trading and Securities Fraud Enforcement Act
In the United States, a 1988 law that significantly increased the penalties associated with insider trading and securities fraud. For example, for insider trading, the Act provided for fines of up to three times the profit an offender made as a result of the inside information. It also provided for cash payments to "whistle-blowers" and civil penalties for managers, who, knowing that persons working under them are likely to engage in insider trading, fail to act.


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The ITSFEA added sections 20A and 21A to the Exchange Act, which authorized the SEC to seek, and federal courts to impose, a civil penalty of three times the illicit profit for insider trading violating any provision of the securities laws or the rules and regulations
The SEC Lobbies Congress for the Passage of the ITSFEA of 1988
 
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