Insider Trading Policies

Summary

This practice note discusses policies companies may adopt to ensure compliance with "insider trading" laws. Insider trading laws generally prohibit persons who receive or become aware of material nonpublic information about a public company (Company) (or other companies that do business with the Company) from trading in the Company's (or such other company's) securities or providing material nonpublic information to others who may trade in the Company's (or such other company's) securities on the basis of that information. Insider trading laws can impose legal liability not only on individuals who fail to comply with these laws, but also on the Company as the employer of individuals who violate these laws.