Insider Trading and Market Manipulation : The SEC's Enforcement Outcomes

The U.S. Securities and Exchange Commission (SEC) often describes enforcement as its number one priority – however, limited empirical work has been undertaken studying SEC enforcement. This article presents the results of an empirical study of sanctions imposed for insider trading and market manipulation in proceedings brought by the SEC. Insider trading and market manipulation are securities violations that are considered to be particularly serious due to their potential to undermine market integrity. Our results provide insights into the enforcement outcomes achieved by the SEC over an extended period and highlight the significant differences in enforcement practices in relation to these high-profile forms of securities violations