Editing Insider trading (section)

===Misappropriation theory===
The [[misappropriation]] theory of insider trading is now accepted in U.S. law. It states that anyone who misappropriates material non-public information and trades on that information in any stock may be guilty of insider trading. This can include elucidating material non-public information from an insider with the intention of trading on it or passing it on to someone who will. 
This theory constitutes the background for the securities regulation that enforces the insider trading.<ref>{{cite web |url=https://www.sec.gov/about/oig/audit/aud311.pdf |title=Disgorgements |publisher=Securities and Exchange Commission}}</ref>
Disgorgement represents ill-gotten gains (or losses avoided) resulting from individuals violating the securities laws. 
In general in the countries where the insider trading is forbidden, the competent Authority seeks disgorgement to ensure that securities law violators do not profit from their illegal activity. 
When appropriate, the disgorged funds are returned to the injured investors. 
Disgorgements can be ordered in either administrative proceedings or civil actions, and the cases can be settled or litigated. Payment of disgorgement can be either completely or partially waived based on the defendant demonstrating an inability to pay. In settled administrative proceedings, Enforcement may recommend, if appropriate, that the disgorgement be waived.
There are several approaches in order to quantify the disgorgement; an innovative procedure based on [[probability theory]] was defined by Marcello Minenna by directly analyzing the time periods of the involved transactions in the insider trading.<ref>{{cite journal|url=https://www.sciencedirect.com/science/article/abs/pii/S0378426601002096 |title=Insider trading abnormal return and preferential information |journal=Journal of Banking and Finance  |date=January 2003 |volume=27 |issue=1 |pages=59–86 |doi=10.1016/S0378-4266(01)00209-6 |last1=Minenna |first1=Marcello }}</ref>