The legislation could make it more likely that recipients of improper tips will face prosecution, some lawyers say
WASHINGTON—For decades, insider trading has lacked a statutory definition, sometimes frustrating prosecutors who must rely on a shifting body of court precedent.
The House of Representatives moved to clear up the uncertainty Thursday by passing a bill that explicitly defines—and bans—a crime that shakes investor confidence in the integrity of financial markets. If approved by the Senate and signed into law, the legislation could make it more likely that recipients of improper tips will face prosecution, some lawyers say.
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