Journal article
Oversimplification and the SEC's treatment of derivative securities trading by corporate insiders
Corporate practice commentator, Vol.37(3), p553
Quarterly edition
01 Jan 1995
Abstract
In 1991, the SEC completed a revision of its rules under the short-swing profit disgorgement provisions of section 16 of the Securities Exchange Act of 1934. By equating transactions in derivative securities with the analogous purchase or sale of the underlying stock, the SEC adopted a unifying and systematic regulatory regime for the treatment of derivative securities trading by corporate insiders. The new rules overturn significant court precedent interpreting section 16(b). While treating simple put and call transactions as equivalent to the purchase or sale of the underlying stock is compelling, more complex derivative strategies do not offer the same potential for the abuse of nonpublic information. Therefore, the SEC has oversimplified.
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Details
- Title
- Oversimplification and the SEC's treatment of derivative securities trading by corporate insiders
- Creators
- Karl Okamoto
- Publication Details
- Corporate practice commentator, Vol.37(3), p553
- Publisher
- Callaghan and Company
- Edition
- Quarterly edition
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Thomas R. Kline School of Law
- Identifiers
- 991021866833604721