Business / Taxes / Insider Trading: If management of a publicly held company, members of its board of directors, or anyone who holds more than 10% of the company trades its shares, it's considered insider trading. This type of trading is perfectly legal, provided it's based on information available to the public. It's only illegal if the decision is based on knowledge of corporate developments, such as executive changes, earnings reports, or acquisitions or takeovers that haven't yet been made public. It is also illegal for people who are not part of the company, but who gain access to private corporate information, to trade the company's stock based on this inside information. The list includes lawyers, investment bankers, journalists, or relatives of company officials.
Business / Finance / Insiders: Act imposing civil and criminal penalties for insider trading violations. MORE
Business / Finance / Trading Costs: A document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer. MORE