The
Insider Trading Sanctions Act of 1984 (168) did not revise the judicial approach to insider trading liability or expand the scope of the prohibition but merely made minor modifications to insider trading liability, including a prohibition on the trading of options and other derivatives in circumstances in which it would be illegal to trade stock and a provision providing for treble damages.
Over the years, the US Congress has substantially increased the penalties for insider trading by enacting the
Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988.
The Securities Exchange Act of 1934 and the Insider Trading Sanctions Act of 1984 have provisions which forbid insider trading.
Two federal statutes have provisions which forbid insider trading: the Securities Exchange Act of 1934 (1) and the Insider Trading Sanctions Act of 1984.
Finally, the court considered the Insider Trading Sanctions Act of 1984.
Congress also appeared to weigh in on the "possession versus use" debate when it enacted the Insider Trading Sanctions Act of 1984 ("ITSA").
In 1984 Congress passed the
Insider Trading Sanctions Act of 1984 (ITSA), which provides for up to three times the insiders' illegal profits in civil penalties and a tenfold increase in criminal penalties (from $10,000 to $100,000).
1985, "Penalizing Insider Trading: A Critical Assessment of the
Insider Trading Sanctions Act of 1984," Duke Law Journal (November), 960-1025.
Congress passed the Insider Trading Sanctions Act of 1984 ("ITSA")(425) in response to increasing violations of the Exchange Act.
Congress deliberated over whether to include a definition in the Insider Trading Sanctions Act of 1984, but ultimately determined that the existing substantive law, as developed by the courts, was adequately clear.
Significant changes in regulatory sanctions during the 1980s, particularly passage of the
Insider Trading Sanctions Act of 1984, were designed to increase expected costs of illegal insider trading.
We focus on the transactions of registered insiders preceding tender offer announcements; specifically, we examine the volume and the profitability of registered insider trading in target firms' shares over two distinct regulatory "eras" - before and after the passage of the
Insider Trading Sanctions Act of 1984.
