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Information > Financial Terms > This page Insider Trading and Securities
Fraud Enforcement Act of 1988 Federal legislation designed to discourage and punish insider trading in securities and securities fraud. One provision of the act authorizes the SEC to award bounties to individuals who provide insider trading information. The bounties are paid out of monies recovered as penalties under the act (instead of directly to the Treasury). Bounties that can be paid from a civil penalty may not exceed 10% of that penalty. Back to Information |