Insider Trading Under Section 14 of 1934 Act

The video discusses insider information in the context of mergers or buyouts, focusing on how information flows between professional firms and investment banks, and how it can be misappropriated. It highlights that liability arises from receiving and trading on inside information without the need for a breach of fiduciary duty, unlike the requirements under 10B5. The discussion is limited to scenarios involving mergers or buyouts.

What types of firms are typically involved in the information exchange during the merger process?

Why is it important to understand the anti-fraud provisions in the context of insider trading?