What are the dedicated trading policies?
Insider trading policy is formal procedures laid down in public companies to prevent unfair exploitation of intimate or internal information for personal profit. In the United States, the Stock and Stock Exchange Commission (SEC) is monitored by stock transactions and sophisticated software used in this monitoring is able to detect suspicious activities. If these activities are discovered, SEC investigates not only people involved in the trade, but also investigates a society whose securities have been traded. The President, President and other major officers are not forbidden to trade in the company's shares; On the contrary, it would be unfair to prevent the company's main creators from being invested in it. The policy of dedicated persons seeks to define a wide range of activities considered to be an illegal initiation for all employees. In most cases, the purchase or sale of shares in a company based on information that is not generally on the displayozni
Most companies have employees at all levels who could get confidential information before the public. It is important to provide them with a clear explanation of what is expected of them, because there are many misconceptions about what the dedicated person's trading represents. For example, some people think it is acceptable to share internal information if they do not benefit from them personally. In fact, whether one personally benefits from abuse of internal information or gives it to someone else who abuses it, a person who transmits within the information has violated the law. Any policy of dedicated persons will clarify.
Companies publicly traded to a large extent to define trading with initiates and create that their employees understand it thoroughly. Most of them require all employees to sign a statement. PolicyHowever, the dedicated trading goes much further than it simply forbids practice. Most of them provide not only the release of all employees caught in the trading of the consecrated persons, but also for their reports SEC for possible criminal charges.
Company employees are not the only ones who could get and abuse confidential information. Attorneys, accountants, software designers and other third parties can participate in internal information during their obligations. Companies that conclude contracts with such third parties
SEC requires that the trades of some consecrated persons in the company of the company be published in the specified period of time. These initiates are the main officers, and other best executives, and Ing trading carefully monitors not only SEC but also many investors inside and outside the company. Without any accusation of illegal trading of the initiated persons, investments of the best creators of the company in this company are considereda statement of its total financial strength.
Other business rules are also set out in the company's business policy. For example, many companies categorically prohibit all employees on the sale of their shares short. Most of them also prohibit any stocks on stocks for a period of time before earnings reports and other such activities.