you have done if you had received a similar call from your broker? When Martha Stewart knew “ImClone is going to start trading downward”, which is the nonpublic information, from Bacanovic’s phone message, she tried to connect with Sam Waksal to learn more information and then, she sold all her ImClone shares. This should be a kind of illegal insider trading. During the period that Stewart and Bacanovic were interviewed by SEC, FBI, and U.S. Attorney’s Office, they had unrecorded meeting
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Because the public lost the trust or confidence on Martha and her company’s business. Her scandal in insider trading would reflect her moral judgments and her business 3. Martha Stewart’s target market Homemaking-product consumers and TV and design show audience, magazines. 4. Qualities of Stewart’s brand: intimacy, family values, trust, honest, healthy living. The accusations of insider trading would affect business associated with advising services such as TV shows, magazines or design industry
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very public figure ruined her image. Why? In my view, she cares her personal money and benefits more than the ethics and laws in stock market. By using the insider information, she could sell the stock of ImClone Company before the FDA announcement and avoid a net loss of $45,673, which is a tiny fraction of her net worth. The action of using insider information is unethical and illegal. At the same time, she lied and provided false statements to the authorities about the ImClone stock trades. I think
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Natural gas Company of Houston, Texas merged with InterNorth that is a natural gas company based in Omaha in 1985. Originally, Enron was basically an operator of the interstates gas pipelines but later it diversified its operations and commenced trading in energy related commodities. Enron became very successful and was touted as the largest merchant of
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ownership and control rights to Cambridge is justifiable. Or, whether this action is possibly to be deemed as insider trading and/or tipping. According to the SEC, insider trading is whereby an employee without being authorized breaches the fiduciary duty and uses confidential information regarding the company’s stock which is not yet publicly declared to trade. Tipping is whereby an insider discloses such information intentionally to third parties, such as family and friend, and provides them with
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Case 1 Insider Trading Purpose: This case discusses a new and potentially alarming trend in the area of illegal insider trading. The Internet is giving people a false sense of anonymity which does not discourage them from sharing private corporate information. This case also makes students aware of how easy it is becoming to gain access to illegal inside information and how to avoid breaking securities law when the information comes to them. 1. This question is not as straightforward
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announced he was resigning his position after only six months. He sold a minimum of 450,000 shares of his stock earning him $33 million dollars. Kenneth Lay, the chairman of the company assured stakeholders that there was no accounting issues or any trading issues and that he would resume the position of CEO after the departure of Skilling. Enron’s stocks plummeted from $90 per share to less than .50 cents when it was revealed that much of its profits and revenue were from deals with special purpose
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J Q: In the above article, Ariel Yehezkel argues that the migration of Israeli Corporations to US stock exchanges is attributable to the difference between the US and Israeli Capital markets Law, and that law really matters. Do you agree with Ariel Yehezkel? Why does law matter? Introduction: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions
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can't just hang a shingle and start selling stocks to the general public, unless you're properly registered and licensed. A brokerage firm is a dealer of stocks and other securities that acts as your agent when you want to buy or sell stocks. Most trading of stocks happens on a stock exchange. These are special markets where buyers and sellers are brought together to buy and sell stocks. The best known stock exchanges are the Bombay Stock Exchange and the National Stock Exchange. The Bombay Stock Exchange
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41.2 Definition of Security Are the notes issued by Co-Op “securities”? In order to answer whether or not these notes are securities we need to understand what a security is. According to our textbook (p.647), the definition of security: (1) An interest or instrument that is common stock, preferred stock, a bond, a debenture, or a warrant (2) An interest or instrument that is expressly mentioned in securities acts; and (3) an investment contract. Next, we can use the family resemblance test
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