The world that the graduating class of 2024 is growing up in is very different from the one their parents knew when they were young. One of the many differences is that financial catastrophe lurks around every corner, to the point that many high schools offer personal finance classes.  Some of the lessons may catch on quickly; teens have seen their parents tremble in fear of late fees, and the pursuit of a good credit score lends itself well to gamification. Proponents of personal finance education for teens often cite as an example of these programs’ success the fact that young adults who have taken these classes are more likely to own stock market investments, even if their parents did not. 

The stock market is baffling to teenagers, though; a share of stock is a difficult concept to grasp. A percentage of what?  How can you buy a tiny fraction of a company? How many shares of stock are there in an observable universe? It turns out that, even when you are a professional, you have gotten a boost to your mood to see that the shares of stock you bought long ago are worth more now than they were last year. Staying on the right side of the law with stock market investing can be confusing, too, especially if you are trading shares in a company for which you work. A Tulsa criminal defense lawyer can help you if you are facing criminal charges for insider trading.

When is it Illegal to Trade on the Stock Exchange?

The stock exchange enables people to buy and sell shares of stock in publicly traded companies. It assumes that all participants are basing their investment decisions on the same information, namely published news stories and the companies’ quarterly reports about their profits and losses. This is where the stock market gets its claim to fairness.

Inevitably, people know more about companies they deal with directly than people without direct experience with them know. You might find out that your company is opening a new store location before the local news station reports it or before a sign with your company’s logo appears at the construction site, for example. The crime of insider trading occurs when people with inside information, which is defined as material, non-public information, make stock market investments based on this knowledge. You have two ways to avoid this accusation. One option is to wait until the information becomes public before you buy or sell shares. The other is to buy or sell before the public finds out the latest news about your company, but only after you file paperwork with the Securities and Exchange Commission (SEC), in which you acknowledge that inside knowledge was a factor in your investment decision.

Contact Tracy Tiernan About Criminal Defense Cases

A criminal defense lawyer can help you if you are under investigation for insider trading or another financial crime. Contact Tracy Tiernan in Tulsa, Oklahoma, to discuss your case.