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Prohibition of Insider Trading: New Rules for Fair Markets

This act aims to strengthen rules against insider trading. It means individuals with non-public information that could affect stock prices cannot use it for personal gain or share it with others. This protects market fairness and ensures equal opportunities for all investors.
Key points
Prohibits buying or selling securities while possessing confidential information obtained wrongfully.
Prohibits wrongfully communicating confidential information to others if it's foreseeable they will use it for unfair trading.
Enhances investor protection by increasing transparency and fairness in financial markets.
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Additional Information
Insider Trading Prohibition Act
Print number: HR 2655
Sponsor: Rep. Himes, James A. [D-CT-4]
Process start date: 2021-04-19