More Than 40 Years Of Legal Service To The Baton Rouge Region
Photo of Professionals at Ezell Law Firm, LLC
Photo of Professionals at Ezell Law Firm, LLC
More Than 40 Years Of Legal Service To The Baton Rouge Region

Seeking advice when accused of insider trading

On Behalf of | Oct 14, 2020 | Business Law |

Baton Rouge Legal Blog

While there may be a certain level of risk involved with trading stocks under certain scenarios, such an endeavor could also hold the potential to be exceedingly rewarding. Individuals in Louisiana who buy, sell or trade stocks may constantly be on the lookout for promising opportunities, but in some cases, acting on certain forms of stock information might not always prove advisable. For instance, acting on information that has yet to go public could lead to allegations of insider trading.

While it may seem as though avoiding accusations of insider trading might be as simple as choosing not to act on non-public information, this might not be the only concern. Experts indicate that a person could still face similar circumstances by sharing such information with another party. It could also be difficult to know whether the information one hears about promising opportunities has yet to go public, as such information could come from virtually any source.

Newer ways of tracking

Experts also indicate that the U.S. Securities and Exchange Commission are continually developing new methods to detect the presence of insider trading. Computer software that is used to track purchases and sales may flag certain transactions, especially if it involves large trades that occur prior to the release of upcoming information. Regardless of how it happens, those who face accusations of insider trading might not always be fully prepared for what comes next.

As convictions for insider trading carry severe consequences, those who stand accused of similar offenses may wish to know how best to protect their futures. Since a similar process can be complex in nature, the average person might not be fully aware of his or her legal rights and available options. Fortunately, there are attorneys who can evaluate the situation a person in Louisiana is facing and provide guidance on the best course of action with which to proceed.