Insider-Trading Case Poses Concerns For Researchers

EVOLVING PARADIGM: Allison Rosenberg of the Government-University-Industry Roundtable feels the insider-trading case reflects changes in drug research funding. The United States Securities and Exchange Commission (SEC) has sent waves of concern through the scientific community by bringing what it calls its first insider-trading case against drug researchers. It is illegal to trade stocks while in possession of information not available to the general public or to inform other traders of such i

Thomas Durso
Jun 8, 1997


EVOLVING PARADIGM: Allison Rosenberg of the Government-University-Industry Roundtable feels the insider-trading case reflects changes in drug research funding.
The United States Securities and Exchange Commission (SEC) has sent waves of concern through the scientific community by bringing what it calls its first insider-trading case against drug researchers. It is illegal to trade stocks while in possession of information not available to the general public or to inform other traders of such information. Few people believe that such activities are widespread among researchers, but some scientists are responding with fears that the result could be a professional muzzling that prevents them from sharing research results with colleagues.

However, other observers argue the case simply illustrates that researchers are no different from anyone when it comes to the rules of investment. In addition, some say it is yet another aspect of the increasingly discussed issue of industry-funded research (K.Y. Kreeger, The...

Interested in reading more?

Become a Member of

Receive full access to digital editions of The Scientist, as well as TS Digest, feature stories, more than 35 years of archives, and much more!
Already a member?