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Insider Trading
Learn how to monitor for and prevent insider tradingPreview the first lesson free — get full access to all 11 lessons.
Essential Provider : KnowledgeCity 4 chapters · 11 Lessons · 31m in Arabic, English, Spanish
Course Description
Preventing insider trading is about upholding fairness and transparency in the stock market. All investors, regardless of their position or the information they hold, are supposed to operate on a level playing field. When insiders—such as company executives, employees, or people with indirect but significant access to confidential information—use their knowledge for trading, it disrupts this balance. This can lead to legal consequences and ethical dilemmas. That’s why companies and their HR departments put so much energy and resources into monitoring for insider trading and trying to prevent it.
In this course on insider trading, we’ll learn about how insider trading works and how your company’s HR department can work to prevent it from happening. You’ll learn to recognize the indicators of potential insider trading, and you’ll examine some real-life case studies that illustrate the potential consequences of this crime. We'll also guide you through creating effective company policies, performing legal surveillance, and the protocols for reporting suspected insider trading.
What You'll Learn
- Understand what actions constitute insider trading and how it works
- Recognize the important laws and entities that enforce insider trading laws
- Identify indicators of potential insider trading to watch out for
- Create comprehensive company policies regarding insider trading
- Legally and ethically surveil and monitor employees for insider trading
- Examine real-life case studies and the protocols for reporting suspected insider trading
Key Takeaways
- Preventing insider trading is about upholding fairness and transparency in the stock market so all investors operate on a level playing field.
- Insiders such as company executives, employees, or people with indirect but significant access to confidential information can disrupt market balance when they trade on that knowledge.
- Insider trading can lead to legal consequences and ethical dilemmas, which is why companies and HR departments invest heavily in monitoring and prevention.
- The course covers recognizing indicators of potential insider trading and examines real-life case studies illustrating the consequences of this crime.
- Effective prevention includes creating company policies, performing legal surveillance, and following protocols for reporting suspected insider trading.
Frequently Asked Questions
Who is this course for?
It is aimed at HR managers and departments, as it covers how a company's HR department can work to prevent insider trading, including its importance for HR managers.
What does this course cover?
It covers how insider trading works, the legal framework, penalties and enforcement, indicators of potential insider trading, case studies, policy development, surveillance techniques, and reporting and whistleblowing.
What skills will I gain?
The course develops skills in insider threat awareness and internal reporting, including recognizing indicators of insider trading, creating company policies, and legally and ethically monitoring employees.
Does the course include real examples?
Yes. It examines real-life case studies that illustrate the potential consequences of insider trading.
How is the course structured?
It is organized into lessons covering Introduction, Understanding Insider Trading, Legal Framework, Penalties and Enforcement, Importance for HR Managers, Indicators of Insider Trading, Case Studies, Policy Development, Surveillance Techniques, Reporting and Whistleblowing, and Conclusion.
Professional Certifications and Continuing Education Units (CEUs)
Society for Human Resource Management (SHRM®)
Professional Development Credits (PDCs): 0.75
KnowledgeCity is approved by SHRM as a Recertification General Provider to offer SHRM-CP or SHRM-SCP professional development credits (PDCs). By taking the courses approved by SHRM, KnowledgeCity can award SHRM Professional Development Credits (PDCs) for HR knowledge and competency programs related to the SHRM Body of Applied Skills and Knowledge™ (the SHRM BASK™).
