An everyday story of trading Volk
|Area||Corporate Finance and Securities|
Article originally published in the Canadian Lawyer Magazine, August 2018
Excerpt from "An everyday story of trading Volk":
Taking a step back, most publicly traded issuers have policies that govern insider trading. These policies are important for many reasons. They create a framework for all insiders to know when they should not be trading (because there is material, non-public information, for example, in the periods before financial information is released or when a significant transaction is in the works). They create a system for internal monitoring of trading by insiders and approvals for certain trading activities. And, perhaps most importantly, they set ground rules to protect the reputation of the issuer and its employees. What those policies do not do, because they can’t, is remove the judgments that must be made in relation to insider trading, to determine when non-public information is such that trading shouldn’t occur for legal or reputational reasons.