1.) Because of the fact thatBL Gupta revealed the undisclosed profits of Goldman Sachs to another person, he is being tried for insider trading. The undisclosed profits of Goldman Sachs could affect the value of its stock. If the profits were up, then Raj would have been able to buy stock and then when the profits were announced, would be able to sell it and make money. If Raj already had stock, then he could have sold it then, and wouldn’t incur the loss if Sachs’s profits went down. He could
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2d 477 (D.N.J. 1998) dealt with whether corporate insiders traded in the securities of his corporation on the basis of material and nonpublic information. The defendants participated in multifaceted fraud schemes for the purpose of artificially inflating the price of stock, selling their substantial stock holdings to an unwitting public, and profiting in excess of $20 million. The court stated that shareholders of a corporation and those insiders who obtain confidential information by reason of their
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Illegal insider trading is when nonpublic corporate information has influenced a trade when someone buys or sells. When someone uses this information it allows them to gain an unfair advantage over other investors causing the market to gain or lose money. If insider trading were allowed then people that invested would no longer feel confident to invest. The legal way to gain an advantage over other investors would be for them to obtain skills in analyzing and understanding accessible information
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Amongst some of the most famous and successful business women in America, Martha Stewart has been recognized for her successful business ventures in broadcasting, merchandising, publishing as well as a spokeswoman. Martha Stewart is a self-made entrepreneur with a fixation for money and never having enough. Stewart is a relentless workaholic who wished to earn every penny possible. Martha Stewart was known to be rude, profane, impatient and self-centered. Her coworkers had witnessed her fits
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Name: Wong Ka Yan UID: 3035104544 Assessment 2- Case Synthesis: Morgan Stanley 1. Basic Empirical Facts of the problem Du Jun, former Morgan Stanley managing director was jailed for seven years for trading with inside information. He brought shares of the Chinese commodities trader after realizing the proposed acquisition of oilfield assets while he was helping it to sell bonds. He was then ordered to compensate HK$23.9 million to investors who sold him shares in 2007 after his conviction with his
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nonpublic information, is considered an “insider”. Insider trading, therefore, is defined by the U.S. Securities and Exchange Commission (SEC) as, “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 the security” (U.S. Securities and Exchange Commission, 2001). It is both illegal and unethical for vital information, known only by “insiders”, to be shared with investors who can then
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accuse Mark Cuban of traditional illegal insider trading, considering he was the largest, individual shareholder of Mamma.com? Even though the information about PIPEs was material inside information, Mark Cuban was not accused as traditional insider information. To qualify as traditional insider trading, there must involve true insiders buying or selling the company’s stock based on material inside information. We need to decide whether Mark Cuban is an insider or not. After buying 600,000 shares of
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Common law 4. Contract 1. The buying or selling of stocks by business insiders on the basis of information that has not yet been made public is 1. Insider trading 2. Business broking 3. Hedging bets 4. Whistle blowing 1. The SEC is the 1. Securities and Exchange Commission 2. Securities and Exchange Counsel 3. Social Excellence Committee 4. Social Expense Commission 1. Which theory of insider trading did the U.S. Supreme Court endorse in 1997? 1. The misappropriation theory
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I started my professional career at one of the “big four” accounting firms working within the audit department. As it is customary, audits are performed within a ‘Chinese wall’ environment and auditors are bound by law not to disclose any information to third parties nor to other colleagues within the firm. Reason being, auditors have unrestricted access to sensitive financial information that can be used to front run markets. One particular late Friday night, a couple of us were sitting at
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ETHICS IN FINANCE Meaning of Ethics Ethics is the study of human behavior which is right or wrong. In general, ethics means doing right things to others, being honest to others, being fair and justice to others. Even ethics in finance is a compartment to general ethics. Ethics are very important to maintain constancy in social life, where people work together with one another. In the process of social development we should not be conscious of ourselves but also conscious to take care of others
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