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Simple English definitions for legal terms

classical theory of insider trading

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A quick definition of classical theory of insider trading:

The classical theory of insider trading is when someone who works for a company, like an employee or boss, uses secret information to buy or sell stocks in that company. This is only illegal if the person had a responsibility to share that information with others, like if they were a boss or director. If they didn't have that responsibility, it's not illegal. If someone tells a friend or family member the secret information and they use it to buy or sell stocks, both people can get in trouble. However, there is another theory of insider trading called the misappropriation theory that doesn't require a responsibility to share information.

A more thorough explanation:

The classical theory of insider trading is a type of securities fraud where a corporate insider, such as an employee, director, or officer, trades in securities of their company based on material non-public information. This theory requires that the individual trading on inside information has a fiduciary duty to disclose the information. For example, a corporate director or officer cannot trade in their corporation’s stock based on material non-public information because they have a fiduciary duty to disclose such information.

One example of classical insider trading is the case of Chiarella v. U.S. In this case, a printer of corporate takeover bids deduced the concealed party names and purchased stock in the target company before the takeover bid became public without disclosing his knowledge of the takeover bid. Once the takeover bid became public, the printer sold the target stock and earned a significant return. The Supreme Court held that the printer did not commit securities fraud because he had no duty to disclose the information of the takeover bid to the seller of the target security.

Another example is the case of Salman v. U.S. In this case, an investment banker gave investment tips he learned from his deals to his brother, who in turn traded on the information. The Supreme Court upheld the investment banker’s conviction under Rule 10b-5 because he personally benefited from gifting the inside information, which constituted a fiduciary breach. The Court also upheld his brother’s conviction because he assumed his brother’s fiduciary breach and traded on the inside information.

These examples illustrate how the classical theory of insider trading requires that the individual trading on inside information have a fiduciary duty to disclose the information. If they do not have this duty, they may not be liable for securities fraud under this theory.

class action | Clayton Antitrust Act

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im distracting myself by schizo-scrolling r/lawschoolamissions and every conceivable data point on this godforsaken website
it is not working
Haaa I naturally want to do that too. I’m trying to stop. They need a surgeon general’s warning on this site for perspective law students
i spend more time on here then anything else trying to rationalize that the waves from last year will match waves for this year (they won't) and that the stats of people with the same stats are indicative of my own (they aren't)
There aren't many people in my stat range so I pretty much know every result in my range after being on here for a few years
9:28
congrats on the 172 bruce
go dawgs fr
9:29
roll tide
do we foresee a fordham election day wave today (i'm delusional)
WorthlessAttractiveZombie
9:31
I think so, Jack
9:31
some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
9:32
[kevin oleary]
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
WorthlessAttractiveZombie
9:34
I mean if Fordham doesn't release today I will purposefully get on a train, go to new york, and then take the stinkiest shit inside the admission office's toilet (potentially clogging it and forcing them to get a plumber)
IS IT ONLY ON MY END WHY DID THAT SEND TEN MILLION TIMES
HELLO
WorthlessAttractiveZombie
9:35
it sent a million times lol
WHAT HAPPENED
yeah i thought you were tweaking for a second
i'm so sorry everyone what the actual fuck this website hates me
WorthlessAttractiveZombie
9:35
Jack's just tweaking on LSD no biggie
to be fair this accurately represents my mental state
election day psychosis coming in hot (fordham)
usc pls pull through .....
i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
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