NCJ Number
116407
Journal
Corporate Practice Commentator Volume: 30 Issue: 3 Dated: (Fall 1988) Pages: 417-456
Date Published
1988
Length
40 pages
Annotation
After briefly reviewing the development of insider-trading restrictions under Rule 10b-5 of the Securities Exchange Act of 1934, this article proposes an analysis of insider trading restrictions that utilizes a property rights approach, thus resolving certain analytical problems existing in the present doctrine.
Abstract
The article argues that certain analytical problems connected with the enforcement of restrictions on insider trading doctrine can be ameliorated by treating inside information as property, identifying the owner of that property, and permitting the owner to exercise rights of ownership with respect to the property. Relevant Supreme Court cases are discussed, along with specific statutory provisions. Implementing the property rights approach could be accomplished by amending State corporation law or by revising Section 10b and Rule 14e-3 of the federal law. 251 footnotes.