Insider Trading Duke Energy's Code of Business Ethics
Duke Energy's success in the marketplace requires that we maintain the trust and confidence of the investment community. Duke Energy employees must act with integrity when trading public securities, adhering to all applicable laws.
Insider trading may occur when an employee:
- Knows material non-public information about Duke Energy or any company with whom Duke Energy has a business relationship.
- Buys, sells, or otherwise trades a company's securities, such as stocks, bonds or options while in possession of that information or tells others about it before it is made public.
“Material non-public information” is information that would affect a reasonable investor's decision on whether or not to invest in a company's securities. Examples include, but are not limited to:
- Unpublished financial results.
- News of a pending or proposed company transaction.
- Significant changes in corporate objectives.
- News of a significant sale of assets.
- Changes in dividend policies.
- Financial liquidity problems.
Circumstances suggesting the possibility of insider trading may result in an investigation by a stock exchange or by governmental authorities. Such an investigation could damage Duke Energy's brand and reputation and result in liabilities or penalties, including criminal charges and/or fines against the employee.
Our Responsibilities
Duke Energy employees are expected to be very careful when trading securities, even the Duke Energy securities in our retirement accounts, to make sure that trades are not made while in possession of material non-public information.
Duke Energy employees must:
- Direct questions related to insider trading laws to the company’s law department.
- Allow approximately two full trading days after any material nonpublic information of which we are aware has been made available to the public before trading Duke Energy securities. This includes transfers into and out of the Duke Energy stock fund in our savings plans, and changes in patterns involving purchases of Duke Energy securities within the plans. (Regularly scheduled purchases of Duke Energy securities within plans are not prohibited.)
Duke Energy employees must not:
- Trade the securities of Duke Energy or those of its suppliers, customers or other companies with whom Duke Energy has a business relationship while in possession of material nonpublic information.
- Trade in options, warrants, “puts” and “calls” or similar instruments on Duke Energy stock or sell Duke Energy stock “short.”
- Give material nonpublic information to anyone not authorized to have that information, including other Duke Energy employees. If that information is subsequently used by the person to trade on securities, it may be considered illegal “tipping” and a violation of insider trading laws.
Q & A
Q: I am a financial professional and often talk about business with my spouse. That's not a problem, is it? I only occasionally reveal nonpublic information and my spouse knows not to tell anyone else.
A: This is a problem that could be costly for both you and the company. If your spouse were ever to use material non-public information given by you to buy or sell securities, both of you could be prosecuted for illegal insider trading. You should not give any non-public information to your spouse or to others.
