Thus, for example, Congress explicitly found, in section 2 of the ITSFEA
, that the SEC's rules and regulations governing insider trading were "necessary and appropriate," and that the Commission had "enforced such rules and regulations vigorously, effectively, and fairly.
Consistent with the primary objectives of the Securities and Exchange Commission Act of 1942 and ITSFEA
, both papers interpret these results as an indication that insider trading prior to corporate events may not fully reflect insiders' intentions as insiders face significant penalties if they are found guilty of trading on private information.
, "[I]n situations in which the information is never fully disseminated to the public, the profit gained or loss avoided [will] be measured by the difference between the purchase or sale price and the value the security would have had at the time of the violation if the information had been publicly disseminated, based upon the facts and circumstances of the case.
575, 608 (observing that Congress passed ITSFEA
after "fram[ing] insider trading as an issue of immorality and punishment .
Besides potential discipline by professional associations for lax controls, accounting firms may be liable as controlling persons for employee misconduct under ITSFEA