BSLW1021 Lecture Notes - Lecture 6: Tender Offer, Initial Public Offering, Insider Trading
Document Summary
Selected securities laws: blue sky laws state laws. Prevent someone from buying or selling something worth no more than a blue sky : securities act of 1933 regulates the issuance of new securities (ipos initial public offering, securities exchange act of 1934. Sec: monitors if the company gave accurate, truthful information to the investors: truthful, don"t omit, file annual, quarterly reports with the sec, when buy stock it says something about the value of the company. Insider trading: purchase or sale of any security based on material nonpublic information, in breach of trust or confidence (a fiduciary duty) to shareholders or to the source of the information: can"t trade on inside information, insider: All have fiduciary duty to the company and its shareholders: if you"re an insider to a company you have a fiduciary duty not to trade on that knowledge owe it to shareholders.
