What Makes Reporting Insider Transactions To The SEC Compulsory?
The system of trust and transparency that public companies face creates an environment of responsibility towards their investors. Corporate insiders trading their own company's stock can have a significant impact on how the market is perceived. To protect investors and ensure an even playing field (a fair marketplace) for all participants, corporate insiders are obligated. · Promoting market transparency In the absence of insider trading tracking , the stock market favors those with inside information. Effective regulatory oversight is achieved through the use of robust monitoring regulations, dissuasive and severe penalties, and real-time disclosure systems that provide all market participants with access to the same information and provide a level playing field for the purpose of making investment decisions based on publicly available information. · ...