Keywords
Chiarella, 10b-5, securities, securities regulation, insider trading, SEC
Abstract
This article is a Commentary on a previous Note published in the Fordham Urban Law Journal (Note, Insiders, Options and the Fiduciary Principle: A Rule 10b-5 Loophole, 16 Fordham Urb. L.J. 295 (1988)). The Note argued that the Supreme Court has expressly endorsed only one theory of insider trading liability, in Chiarella v. United States. By the simple expedient of trading options on common stock rather than the common stock itself, an insider can escape Rule 10b-5 liability under Chiarella.
Recommended Citation
Steve Thel,
Closing a Loophole: Insider Trading in Standardized Options,
16 Fordham Urb. L.J. 573
(1987).
Available at: https://ir.lawnet.fordham.edu/ulj/vol16/iss4/2