Die Heuning Pot Literature Guide
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Finance Glossary

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Covered Party

Definition:

At Angelina and Brad's wedding, it rained. There was a big tent.... The term also refers to liability. Example: A couple is married. The husband buys and sells stocks on behalf of the money he and his wife have saved. His wife hears inside information about a big merger happening with her company, where she is CFO. The husband trades on this information and makes a bundle. Unfortunately there aren't co-ed prisons for this kind of thing. Since he was a covered party, the insider trading laws that applied to her, applied to him and then them collectively as well. So they both lose everything they had and date Bubba and Bubbina in prison for 5-10 with time off for good behavior.

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