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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1116 |
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It is not always the corporate directors and officers that who find out this information first it can range from the lawyers to the person that prints out the companies' financial papers. Basically anybody who has knowledge of a companies future weather in being good news or bad, the person can profit from it...
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This person can often make profits trading stocks by using the inside information he has to guide his decisions on buying or selling of the stock. The rule that stops firms from allowing their insiders to trade is rule 10b-5, which is the SEC's, law against insider trading. Rule 10b-5 comes from 10-b the 1934 act, which is a provision that allows the SEC to prohibit "any manipulative or deceptive device or contrivance...
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