H.R.1173 - Ban Insider Trading Act of 2015114th Congress (2015-2016)
|Sponsor:||Rep. Lynch, Stephen F. [D-MA-8] (Introduced 02/27/2015)|
|Committees:||House - Financial Services|
|Latest Action:||House - 02/27/2015 Referred to the House Committee on Financial Services. (All Actions)|
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Summary: H.R.1173 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in House (02/27/2015)
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:
- 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.