To be guilty of insider trading, one must be an officer of the company involved.

Question

Quizplus · Accepted Answer

Ivan Boesky and Michael Milken, convicted users of illegal insider information in the late 1980s, were forced to give up their gains, pay heavy fines, and serve jail sentences. In their particular cases, they traded on insider information about mergers well before the public was informed. Although they were not officers of the companies or on the boards, they had special fiduciary responsibilities as money managers that they violated.

To Be Guilty of Insider Trading, One Must Be an Officer