Insider trading

and information as it is very important to the decisions they make. When this information is leaked or used prior to its release to the general public, it can cause substantial changes in the pricing of a company’s stock. “Insider trading” is a term that is commonly known to investors, but what is insider trading? This term in most cases is references to illegal actions. However, the term speaks to both legal and illegal actions. According to the U.S. Securities and Exchange Commission (n.d.) (SEC), Insider trading as a legal action, addresses when corporate insiders-officers, directors, and employees-buy and sell stock in their own companies. In situations of legal insider trading, they are required to…

IMPACT OF INSIDER TRADING LAWS IN AUSTRALIA 1.0 INTRODUCTION Securities law in Australia is predominantly governed by the Corporations Act 2001(the Corporations Act). On the other hand, the Australian Securities and Investments Commission (ASIC) is charged with the mandate of regulating the securities market with insider trading being a current priority. The Australian insider trading provisions are notoriously difficult to comprehend as they poise a conundrum in definitions of insider trading…

the market. R. Foster Winans disclosed this information to the stock brokers before the company made the information available to the public. The crime that was committed in this case is referred to as insider trading. Insider trading is when employees inside of a company have access to profitable information that has not been made available to public in regards to the stock market. In addition, insider trading is unethical because insider trading violates the U.S. Securities and Commission…

Case 7: Gillian and Insider Trading Who has moral responsibility for deciding what to do? In this case we are introduced to Gillian Lee, the Senior Administrative Assistant to the VP of Operations at Global Potash Enterprises (GPE). Gillian is faced with the ethical dilemma of whether or not to use insider information about GPE to her advantage. Gillian had recently seen a preliminary geographical report on her boss Jerry Adams’ desk, detailing the minimal amount of minable potash in GPE’s…

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…

Introduction to Insider Training: Insider trading, usually referred with the negative connotative meaning, is the trading of non-public information among shareholders to gain a personal profit or prevent any possible losses. The violation of this practice can be denoted by stating that “Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about…

In the states of Virginia and New York, trades secrets consist of, “of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it.” Trade secrets are typically protected by nondisclosure agreements. For example, Virginia is one of several states that have adopted the Uniform Trade Secrets Act; however, New York has not yet adopted the Uniform Trade Secrets Act The damages for theft…

Introduction to Insider Trading Insider trading is the act of gaining access to confidential trade information through the stock exchange and using it for a personal advantage. Inside traders essentially know before a company’s stock plummets, and they have the advantage to trade and sell those shares before the rest of the general public does. Insider trading is currently illegal, but there are numerous people who are trying to legalize it. There are two viewpoints of Insider trading: Those who…

The companies, like Brown & Williamson, didn't impart these activities to the government or to their customers (The Insider). A film released in 1999, The Insider, tells the story of two whistleblowers. The first whistleblower who has a Ph.D. in biochemistry, Dr. Jeffrey Wigand, was an upper-rank Brown & Williamson executive. Brown & Williamson at that time declined that nicotine was, in any way, addictive. They also stated that the research behind tobaccos detrimental effects were hoaxes and…

Orson Scott Card’s definition of an outsider conveys an idea that outsiders can see things more clearly and are important to everyone around them. He compliments their stronger sense of self compared to the rest of people in society. Card mentions how an outsider has a unique perspective than everyone else and that great heroic deeds are made by outsiders because of this unique perspective. While there is a notion that outsiders are not important, it is clear that outsiders are necessary in…