CAN ONTARIO IMPROVE ITS INSIDER TRADING REGULATION AND ENFORCEMENT BY ADOPTING POLICIES USED IN THE USA? Prepared by Muhammad Bilal Amjad 2B Accounting and Financial Management ID 20429857 AFM 231: Business Law School of Accounting and Finance University of Waterloo Friday, August 9, 2013 Abstract The purpose of this paper is to present potential suggestions on how Canada (more specifically, Ontario) can improve its insider trading regulation and enforcement. In order to do so, this
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sensitive information belongs to the company. However, the arguments made in “Property rights” push for the case that if this information does belong to the organization, then it is the organization’s right to allow its employees to use it for insider trading. Let us examine these arguments. Who does price-sensitive information belong to? The employees who create this price sensitive information are empowered by the finances and reputation of the firm. Without this, they can’t make decisions that
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16 October 2012 Insider Trading In a securities market there are winners and losers, people who get good prices and people who get bad prices. Other things equal, the person with the best information about what is being bought or sold stands in the best position to find bargains and get the best price. Competing against corporate insiders, who possess superior information thus increases the risk that one loses. As a society
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ANÁLISE EMPÍRICA DA PRÁTICA DE INSIDER TRADING EM PROCESSOS DE FUSÕES E AQUISIÇÕES RECENTES NA ECONOMIA BRASILEIRA ARTIGO – FINANÇAS Marcos Antônio de Camargos Doutorando em Administração no CEPEAD-UFMG Professor e Pesquisador do curso de Administração do Centro Universitário de Belo Horizonte (UNI-BH) e da Faculdade Novos Horizontes E-mail: mcamargos@cepead.face.ufmg.br Recebido em: 30/05/2007 Aprovado em: 02/10/2008 Julio Alfredo Racchumi Romero Doutorando em Demografia no CEDEPLAR-UFMG E-mail:
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Insider trading is experiencing major cases, which include Marvericks’ Owner trials with the Securities and Exchange Commission, criminal trial of Expert Network James Fleishman and the trial of a former Goldman director. Goldman Sachs Group Inc.’s board and other boards controlling the companies affiliated to Insider Trading have failed to control business issues in the companies. In some cases, the boards have interfered with the functioning of the Insider Trading through the manner in which they
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Board of India (Prohibition of Insider Trading) Regulations, 1992 (Insider Trading Regulations). 1. Legal version is when corporate insiders—officers, directors, employees and large shareholders, buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC 2. Any “dealing in securities” while in the possession of “unpublished price sensitive information” is prohibited under the Insider Trading Regulations and the term “dealing
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Case Study: The Trial of Martha Stewart The United States of America is one of the few western countries which has no clear definitions for “insider”, “insider information”, and “insider trading” in its law system. Therefore, people are sending to prisons for a crime that has not defined yet. It is part of a due process that people have notice of what they are doing is wrong. Martha Stewart was sent to prison, because she sold her ImClone shares as a result of receiving tip from her broker on December
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The SEC addresses both legal and illegal insider trading applicable, but not limited, to corporate executives, directors, employees, friends and family of insiders, people who are privy to information as a result of working for a firm that has inside information due to interaction with the corporation (SEC, n.d.). The SEC governs securities, but the same guidelines can be applied to other forms of monetary investment or gambling where one party has knowledge that unfairly provides an opportunity
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The SEC addresses both legal and illegal insider trading applicable, but not limited, to corporate executives, directors, employees, friends and family of insiders, people who are privy to information as a result of working for a firm that has inside information due to interaction with the corporation (SEC, n.d.). The SEC governs securities, but the same guidelines can be applied to other forms of monetary investment or gambling where one party has knowledge that unfairly provides an opportunity
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Current insider trading law is a theoretical mess. Legal experts have described it as seriously flawed, ill-defined, inconsistent, dysfunctional, and an enigma. A recent paper posits a new theory of insider trading which may provide some coherence what is now a dog’s breakfast. For those in investment research, any improved clarity would be a godsend. Sung Hui Kim, a law professor at UCLA, released a paper last month titled “Insider Trading as Private Corruption” which argues that insider trading
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