Contact Us
Home
Expertise
Best Practice
Products and Services
About Us
Contact Us
Newsroom
Press Releases
Management Team
Clients
Client Community
New Online Course Helps Employees
Stay on the Right Side of the Insider Trading Laws
Insider Trading Do's and Don'ts
Press Releases

Dedham, Mass.—July 29, 2002
In a time of high-profile insider trading scandals involving public figures such as Martha Stewart, Integrity Interactive Corporation is offering a new version of its insider trading course to teach employees about their responsibilities under the insider trading laws.

Integrity's Web-based insider trading course uses stories to teach employees the complex legal knowledge they need to know about the insider trading laws. As a public service, Integrity is also offering a free insider trading compliance alert bulletin that spells out the do's and don'ts of insider trading. It includes questions employees should ask before they make a trade, as well as actions that will help them stay in compliance with trading and security policies.

"Many of our clients are upgrading their corporate ethics and compliance programs in response to requests from their boards of directors," said Carl Nelson, president of Integrity Interactive. "Our new online insider trading course is a great way to reach employees with this critical legal information. It can protect the employee and the company from the catastrophic consequences of ethical or compliance failures that we see played out every day in the press."

Integrity's new course is the latest addition to the company's comprehensive ethics and compliance offerings. The course covers:
  • What is insider trading
  • What is inside information
  • Who is an insider
  • Tipping (on the basis of inside information)
  • Trading (on the basis of inside information)

Insider Trading Do's and Don'ts

Fed Chairman Alan Greenspan recently said,
"Although we may not be able to change the character of corporate officers, we can change behavior through incentives and penalties."
At Integrity Interactive we believe education will play a critical role in this transformation.

It is against the law to buy or sell stock on the basis of inside information.
 While working for your company, you may learn important and confidential information, called "inside information," about your company-or about one of your company's suppliers, customers or business partners-that could affect the company's stock price.

Under the federal securities laws, the penalties for insider trading are very severe, including the return of all trading profits, fines of three times the profit and even prison terms.

Before trading, ask yourself these questions:
  • Is this trade covered under your company's trading policy? Check the policy, and where necessary, talk with legal counsel before trading!

  • Do you have "hot" news about the company (good or bad) that could affect the stock price once the information is announced? If it is, don't trade!

  • Has there been an official public announcement that has been reported in the major investment media and digested by the market? If not, don't trade!

  • Has someone given you a "hot tip" that you have reason to believe is inside information. If so, don't use it!

  • Are you unsure whether important company news might be inside information? Don't use it or share it—you could be setting yourself, your family, your friends, and your company up for disaster!
Actions that will keep you on the right track
  • Consult your company's trading or security policies—and, when necessary, legal counsel—before trading in your company's securities or the securities of a supplier, vendor, customer, or other company partner.

  • Be aware of how your company's trading policies and the trading laws apply to your position, particularly if you are an officer or director of a corporation.

  • Keep confidential all "inside information." This is defined as "material or important, non-public information about your company."

  • Stop the conversation if anyone tries to give you a "hot" inside tip about a company.
Avoid Dangerous Missteps
  • Don't trade on information about your company or its partner companies that may not be available to the public.

  • Don't trade on information which you suspect in any way might be inside information.

  • Don't disclose inside information to anyone-not family, not friends.

  • Don't recommend a trade, even without stating a reason, based on inside information.

  • Don't give false or misleading information that others might think is a tip.

  • Don't try to find clever ways to trade on inside information or a tip—the SEC has more people, and more clever ways, to detect even the smallest insider trade.



Press Releases
Expertise

Today, corporations must defend the effectivness of their ethics and compliance programs to both regulators and shareholders. Integrity Interactive clients are prepared.

Client Community

Today, corporations must defend the effectivness of their ethics and compliance programs to both regulators and shareholders.