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Title: American and German Regulation of Insider Trading: A Comparison

Authors: Maria Kathleen Boss; Cheryl A. Cruz; Cornelia Alsheimer-Barthel

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: It is extremely important for American business people to be aware of approaches to regulation of insider trading within the European Union, particularly the approach of Germany, its single most influential member. At the same time, European Union members must be sensitive to the completely different approach to prohibited insider trading which is used by American courts. Failure of business people on either side of the Atlantic to be alert to significant differences between the two trading partners could result in criminal prosecution for actions which are perfectly legitimate in the investor's own country. Moreover, such inconsistencies can create opportunities for market failure. Given the significant and increased commercial relationship between the United States and the European Union, particularly Germany, the problem will only be exacerbated as global investment escalates.

Keywords: Insider trading; regulation; criminal prosecution; market failure; global investment.

DOI: 10.1504/JBM.1996.141023

Journal of Business and Management, 1996 Vol.3 No.3, pp.36 - 52

Published online: 05 Sep 2024 *