Which activities are considered "prohibited practices" under the Uniform Securities Act?

Engaging in insider trading and misrepresentation is classified as a prohibited practice under the Uniform Securities Act because these actions violate the principles of fairness, transparency, and integrity in the securities market. Insider trading involves trading based on non-public, material information, giving an unfair advantage to some traders over others. Misrepresentation includes providing false or misleading information about securities or their issuers, which can lead to investors making uninformed decisions. Both practices undermine investor confidence and the orderly functioning of financial markets, which is why they are expressly prohibited.

In contrast, routine reporting of investment results, providing market analysis, and conducting investor seminars are all activities that financial professionals typically engage in as part of their service offerings. These activities do not inherently violate securities regulations, as long as they are conducted in a truthful and clear manner without any misleading information being presented. Thus, they do not fall under the definition of prohibited practices.