Ban Insider Trading Act of 2015 2015-02-27 Introduced in House Ban Insider Trading Act of 2015

This bill amends the Securities Exchange Act of 1934 to make it unlawful to purchase or sell any security, or securities-based swap agreement, that is based upon information that the person knows (or should know) is material inside information.

"Inside information" is defined as information that is nonpublic and obtained:

  • illegally,
  • directly or indirectly from an issuer who expects either confidentiality or that it will only be used for a legitimate business purpose, or
  • in violation of a fiduciary duty.

"Material information" is defined as information relating to an issuer or to a security which, if it were made public, would likely have a significant effect upon the security's price.

Subjects a person to liability to prosecution for trading in prohibited securities while in possession of material nonpublic information if the person, without a legitimate business purpose, discloses intentionally to another person information that the discloser knows (or should know) is material inside information.

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