New! H2O now has access to new and up-to-date cases via CourtListener and the Caselaw Access Project. Click here for more info.

Main Content

Casebook Read Credits
An Introduction to the Law of Corporations: Cases and Materials
Section 6 . 2
1 hour

Federal-based liability

Brian JM Quinn

In additional to state-based liability, traders trading on the basis of inside information may also be liable under the federal securities laws. Federal insider trading liability carries with it potentially both civil and criminal liability. Like state-based liability, federal liability for insider trading is derived from the common law. There is no federal statute that explicitly prohibits insider trading. Rather, courts have interpreted Section 10b of the Securities Act of 1934, the Act’s anti-fraud provision, as prohibiting insider trading.

This book, and all H2O books, are Creative Commons licensed for sharing and re-use with the exception of certain excerpts. Any excerpts from the Restatements of the Law, Principles of the Law, and the Model Penal Code are copyright by The American Law Institute. Excerpts are reproduced with permission, not as part of a Creative Commons license.