Panuwat v SEC’s implications on insider trading regulations

As the United States of America has evolved from its founding to the present day, financial fraud has grown increasingly complex. In response to this changing landscape, the United States government has attempted to prevent fraud through various mediums: regulations, legislation and judicial enforcement. Yet, financial fraud remains deeply woven into the fabric of American history, as some of the country’s most pivotal moments have also served as catalysts for sweeping financial reforms. Insider trading is one of the most popular uses of this, one in which individuals misappropriate information from a company to use for personal gain. The definition of insider trading has largely been debated and has culminated in the case of Panuwat v. Security Exchange Commission. This paper will discuss the facts of Panuwat v. SEC, the history leading up to the passage of The Securities Exchange Act of 1934 , and cases that are significant in insider trading regulation. Depending on how the courts decide, a new era of regulation will be created changing the way that corporations interact with the markets and how the stocks are traded.