This article examines the law of insider trading in both the American and Egyptian legal systems. It seeks to pinpoint the policy rationale behind prohibiting insider trading, the theories of civil enforcement and criminalization, and the concept of tipping in the United States. It also analyzes the express statutory prohibition under Egyptian law. Furthermore, it explains the doctrinal link between securities fraud and insider trading in the U.S. as well as the enforcement mechanisms in place at the SEC, the NYSE, and the NASDAQ. It also surveys the surveillance authority of the Egyptian Financial Regularity Authority and of the Egyptian Stock Exchange. It concludes to that both the American and Egyptian law prohibit the offense of insider trading and that there is an effective enforcement mechanism in the United States. Yet, the Egyptian enforcement authorities still need to adopt a clear and more efficient procedure for enforcing the offense of insider trading. The Egyptian Financial Regularity Authority resources should be bolstered to recruit skilled personnel and equip them with artificial intelligence technology.
Insider Trading Framework in United States and Egyptian Stock Markets,
13 J. Bus. Entrepreneurship & L.
Available at: https://digitalcommons.pepperdine.edu/jbel/vol13/iss2/3