NCJ Number
132704
Journal
North Carolina Law Review Volume: 68 Issue: 3 Dated: (March 1990) Pages: 465-494
Date Published
1990
Length
30 pages
Annotation
The Insider Trading and Securities Fraud Enforcement Act of 1988 is a piecemeal, but pragmatic, response to the perceived growth of insider trading in the securities market and includes several provisions that subtly change the law on insider trading.
Abstract
The impact of these provisions becomes clear only after examining the law's legislative history and the previous status of jurisprudence on insider trading. Thus, they have arguably resulted in the validation of Rule 14e-3 of the Securities and Exchange Commission, prohibiting a person from trading while in the possession of material, undisclosed information about an upcoming tender offer. In addition, they have apparently created the basis for applying a uniform 5-year statute of limitations to all claims under Rule 10b-5 and clarified the issue of transactional causation in insider trading cases. Further law reforms are likely as well given the special study under way and the legislative recommendations that have already been submitted. 229 footnotes