The Insider Trading Sanction Act established what?

The Insider Trading Sanction Act (ITSA) was established to strengthen the laws against insider trading by introducing several significant provisions. One of the key aspects of the ITSA is the imposition of treble damages for those found to have committed insider trading. This means that individuals who violate insider trading laws could be required to pay three times the amount of profits gained or losses avoided due to their illegal trading activities. This provision was developed to act as a strong deterrent against insider trading practices, emphasizing the seriousness of the offense.

Additionally, the act holds aiders and abettors liable for their role in facilitating insider trading. This means that individuals who may not directly engage in insider trading but assist or encourage the trading can also face legal repercussions. This expanded liability serves to broaden the scope of accountability in insider trading violations and ensures that those who contribute to the illegal activity can also be punished.

While the act does not specifically establish a ten-year statute of limitations, the combination of establishing treble damages and liability for aiders and abettors includes critical components that illustrate the law's intent to strengthen regulatory measures against insider trading. Thus, the correct answer encompasses the key elements brought forth by the ITSA, with emphasis on the significant penalties and liability enhancements