(Cheeseman 2013) In the case of United States v. Bhagat. Atul Bhagat was an employed by the Nvidia Corporation (Nvidia), had just successfully competed for a multi-million dollar deal to develop a video game console named( X-Box) for the Microsoft Corporation. Upon receiving the contract, Nvidia's Chief Executive Officer sent out a company-wide e-mail to every employee notifying them of the contract award. And letting all employees know to keep the X-Box information confidential. They also executed a trading blackout on the purchase of Nvidia stock for several days,
Bhagat would go on to purchase stock a large volume of Nvidia stock. He would also detail that he had read the email briefly but not in detail after the email was originally sent out. By that time he had already purchased the Nvidia stock. He also denied telling anyone of the about the contract award for Microsoft. The United States would later go on to bring criminal charges against him for insider trading and tipping. (Cheeseman 2013) …show more content…
They also know about a specific security and make a profit by doing so. This can be illegal or legal it depends on when the insider make the trade. When it becomes illegal in when the material information is nonpublic and the trading is conducted while have knowledge. This is unfair to the typical investors who on the other hand would not typically have access to this type of information. Insider trading is also legal but only after the material information has been made public. This eliminates them having the advantage over the investor. Keep in mind the insider traders still has to report all of their
Bhagat would go on to purchase stock a large volume of Nvidia stock. He would also detail that he had read the email briefly but not in detail after the email was originally sent out. By that time he had already purchased the Nvidia stock. He also denied telling anyone of the about the contract award for Microsoft. The United States would later go on to bring criminal charges against him for insider trading and tipping. (Cheeseman 2013) …show more content…
They also know about a specific security and make a profit by doing so. This can be illegal or legal it depends on when the insider make the trade. When it becomes illegal in when the material information is nonpublic and the trading is conducted while have knowledge. This is unfair to the typical investors who on the other hand would not typically have access to this type of information. Insider trading is also legal but only after the material information has been made public. This eliminates them having the advantage over the investor. Keep in mind the insider traders still has to report all of their