More than two decades after the famous insider-trading convictions of Michael Milken and Ivan Boesky, insider trading has once again been splashed across the headlines over the past several years. Numerous cases, some involving bizarre schemes (and even a celebrity), have brought public attention back to the issue of illegal stock-trading on secret market-moving information about companies. This fascination recently culminated in the media frenzy over the trial and conviction of hedge-fund billionaire Raj Rajaratnam. Of great interest to many observers was not so much Mr. Rajaratnam's alleged crimes but his giant global web of informants, including consultants in the so-called expert networks that hedge funds call upon to gather information about trends in particular industries. In a Businessweek article pondering the implications of the Rajaratnam case for the future, the journalists note:
"In Boesky's day, Wall Street was a smaller, more insular world, and inside information flowed among a tighter circle of people...By the time the government’s latest case came to light with Rajaratnam's arrest in October 2009, insider trading had moved well beyond the world of merger deals and investment bankers. The cast of characters is diverse—lower-level employees, both male and female."
To help financial professionals, stock plan participants, and investors stay out of trouble with the SEC and criminal prosecutors, myStockOptions.com has developed a new course, exam, and podcast on SEC law. These materials are based on the extensive articles and FAQs in the SEC Law section of myStockOptions.com. Covered topics include SEC law basics, insider trading and tipping, Rule 10b5-1 plans, the requirements under Rule 144, and the Section 16 rules. The course and podcast complement the popular Think Twice DVD series for insider trading prevention and education that the staff of myStockOptions.com helped to develop.
While the course and exam cover several topics in SEC law, the podcast focuses mainly on insider trading. In an entertaining audio presentation, realistic hypothetical situations involving insider trading are discussed to explain the key misunderstandings about confidential information and stock trading that can get people into trouble with the SEC (even if they don't mean to break the rules).
The new course and exam on SEC law for stock plans offers 5 credits for CEPs and 3 credits for CFPs. In addition, other courses and exams in the Learning Center cover nonqualified stock options, restricted stock and RSUs, employee stock purchase plans, and financial planning for stock compensation. A link to each is available on the Learning Center page and on the home page of myStockOptions.com.
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