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Insider Trading of Alternative Energy Stocks

Friday, April 12, 2013 10:57
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(Before It's News)

You might be working at a green energy company developing new solutions such as more efficient photovoltaic cells, innovative ways to store solar power or other information that is not know to the public.  You may know someone who gives you non-public information. You may be tempted to buy stock in the company before the news is released to the public.  However, insider trading is a crime and penalties vary by country. The United States has the strictest laws.

Penalties have become stricter in recent years and more countries are enforcing insider trading laws. According to the The Economist, penalties can be up to 20 years in prison in the United States. In Brazil, the maximum penalty is five years, but community services sentences are often given instead of prison time.   The Maximum sentence in Japan is only three years.  Enforcement and time actually served vary widely.  Civil penalties are sometimes given instead of criminal ones.

The following chart shows how insider trading laws vary by country.



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