Friday, December 14, 2012

SEC: Trading Plans Under Fire





In 2007, a top securities regulator warned the WSJ that executives could be abusing preset plans to buy and sell their companies' stock "to facilitate trading based on inside information."

Since then, corporate insiders have filed more than one million forms with the SEC related to changes in ownership of their shares. The agency has brought more than 260 cases alleging insider-trading since the speech—but securities-law experts say very few of the cases allege fraud by executives trading their companies' stock.

An SEC spokesman said prearranged trading plans don't shield executives from enforcement action if they trade on the basis of material nonpublic information, "which we can and do detect...."

Find out more at http://online.wsj.com/article/SB10001424127887324296604578177734024394950.html

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