Corporate Code Of Conduct Policy Essay

Corporate Code of Conduct Policy Essay
Code of Conduct guidelines must be practical, compliable and of dynamic essence. The guidelines
should encompass a reactive and proactive approach, thus should consider past experiences that
touched our organization's fiber, as to future challenges and potential risks that could be avoided or
minimized if we plan ahead. Even though our Code of Conduct prefers to display a proactive
envision, the truth is that we are unable to provide for every single situation that we'll encounter
while fulfilling our responsibilities. Very honestly, we believe that there is no Code of Conduct that
could hold all the potential risks, issues and ethical dilemmas that may arise in an organization.
Nevertheless, we also believe that is possible to keep our ... Show more content on Helpwriting.net
...
Although these practices are illegal, they are not necessarily defined as criminal acts. b) Sherman
Act: This legislative piece pretends to restrict dominance that could restrict competition. It has a
broad application and it prohibits monopolization, as to any activity that intends to exclude a
competitor. The Act declares that is illegal to perform any conspiracy to confine trades or commerce,
to induce a market absolute control, as to intent to deprive market rivalry. c) Clayton Act – This
legislative precept supported Sherman's Act by providing a robust and broader spectrum. In this case
it forbids price variation, rebates and discounts that would benefit only a group of clients while
discriminating over others. Among other things, it proscribes the practice of having same individuals
serving as directors in two (2) or more competing firms (interlocking directorates), outlawed
mergers that could reduce competitions or monopolize the market and forbids exclusive dealing.
Whereas doing business in a Capitalist sector, it would be misleading to believe that we carelessly
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Insider Trading
Insider trading relates the investment behavior of corporate insiders with their own stock. Insider
trading topic not only attracts finance literature (see, e.g., Lorie and Niederhoffer 1968, Jaffe 1974,
Seyhun 1986, 1998, Rozeff and Zaman 1988, Lin and Howe 1990, and Lakonishok and Lee 2001),
but also attracts law and economics literature (see, e.g., Manna 1966, Georgeakopoulos 1993, and
Carlton and Fischel 1983). The finance literature on insider trading had started with an examination
of the strong market efficiency hypothesis. Subsequently, researchers gave their attention towards
the determinations of insider trades' profitability. Furthermore, another set of researcher also gave an
attempt to find the information contents of ... Show more content on Helpwriting.net ...
He also investigated determinates of insider trades' abnormal return. And he also found that (1) the
abnormal return of firm officers' trade (both buy and sale) was higher than shareholders' trade; hence
he concluded that an insider who is more close to the firm's operation activity has greater
information content in his trades than other group of insiders (2) there is negative relationship
between the firm size and the abnormal return; hence, he concluded that large firms have more
exposure of regulatory scrutiny and analysts than small firms. Therefore, large firms' stock is
efficiently priced than small firms' stock. Finally, he found that the abnormal returns around the
reporting days are also statistically significant for both buy and sale trades. Lakonishok and Lee
(2001) extended insider trading literature by conducting a comprehensive investigation of the
information content of insider trades on the U.S market. They covered all insider trades including
private trades and option exercise for the 1975 to 1995 period. However, they did not consider those
stocks whose stock prices are less than $2 at the beginning of the calendar year. They divided insider
trades sample into three groups. Management group includes CEOs, CFOs and directors, large
shareholder group who hold more than 10% of shares, and others are all neither manager nor large
shareholders. They divided all firms of the sample into three

Insider Trading : The Illegal Practice Of Trading On The...
Introduction
Insider trading is defined as 'the illegal practice of trading on the stock exchange to one 's own
advantage through having access to confidential information'. Insider trading includes informing
others when you have any sort of information involving market trades that has not been made
available to the public, this is something that is unfair to other investors. It involves the deliberate
exploitation of sensitive price information, obtained through or by privileged relationships; which
gives someone the possession of confidential information because of some connection, allowing
them to use and information to make profit or avoid loss. This information would otherwise not be
obtained, and the financial gains would not have been met or losses would have incurred, had the
information not been illegally obtained to prevent such a situation from happening.
Legal Insider Trading
There is a legal way of insider trading that is acceptable by the United States Securities and
Exchange Commission (SEC). This occurs when corporate insiders such as officers, directors, and
employees buy and sell stock in their own companies. When corporate insiders trade in their own
securities, they must report their trades to the SEC. In order to legally participate in this type of
insider trading, the insiders that wish to perform the trades must file "Forms 3, 4, and 5" available
on the SEC website ("Insider", 2013). Failure to follow this procedure could deem the

Insider Trading Is Unethical?
1. Insider trading is unethical. A person in entrusted to protect confidential information and is
expected to understand their responsibility to not divulge that information until such time as it is put
out in a public forum. If the information is not put out to the public, then it is that person's
responsibility and obligation to maintain the confidentiality of the information he is privy to. Insider
trading is also unfair because it gives someone an unfair advantage by having information ahead of
others. By disclosing information before it is the appropriate time, both the tipper and the tippee are
taking advantage of the business the information is about to further their own agenda and possibly
get a financial gain they would otherwise not be entitled to. Insider trading is stealing from a
company as mentioned in NPR's episode 671, "An Insider Trader Tells All". It's taking something
that is not yours to have and doing so at the potential expense of others.
2. Possible stakeholders include the following:
a. The company(ies) whose shares are being traded with information that is not yet for public
consumption. The information getting out ahead of time is confidential and should not be disclosed
until the company wants it out there.
b. The individuals who may have otherwise purchased the shares of stock had the person not had
insider information to move sooner on the purchase or sale of the stock.
c. The holders of stock, who may have considered selling the shares

Under Armour Code Of Conduct
Under Armour has a big section in their code of conducts document stating what can be considered
insider trading and what the consequences can be if you are involved in it. "It states that it is illegal
for you to buy or sell stock or other securities of Under Armour or any company with which we do
business while you are in possession of material nonpublic information. It is also illegal for you to
disclose such information to anyone else, including members of your immediate family or
household, who might buy or sell securities in response to such information, or to suggest to anyone
else that they buy or sell securities of the relevant company," (Under Armour Code of Conduct).
Under Armour also states that if employees are involved in this

Insider Trading And Trading Of A Public Company
Before we can delve into the topic of Insider Trading it is important to understand what insider
trading and what are its implications. Let us begin with the definitions of insider trading:
"Insider trading is the trading of a public company 's stock or other securities (such as bonds or
stock options) by individuals with access to non–public information about the company. In various
countries, insider trading based on inside information is illegal. This is because it is seen as unfair to
other investors who do not have access to the information." –Wikipedia, 2014
"Insider trading is defined as a malpractice wherein trade of a company 's securities is undertaken by
people who by virtue of their work have access to the otherwise non public information which can
be crucial for making investment decisions."
–ET, 2014
We must note here that insider trading has two aspects: 'legal insider trading' and 'illegal insider
trading':
Insider trading can be illegal or legal depending on when the insider makes the trade: it is illegal
when the material information is still non–public trading while having special knowledge is unfair to
other investors who don 't have access to such knowledge. Illegal insider trading therefore includes
tipping others when you have any sort of non–public information. Directors are not the only ones
who have the potential to be convicted of insider trading. People such as brokers and even family
members can be guilty.
The legal version is when

insider trading Essay
Insider Trading
In our economic economy today, we have gotten a few high profile cases were people have tried to
make money by using illegal tactics, and these are illegal tactics are based on the insider
information. These high profile cases were on Martha Stewart and President George W. Bush. This
is why I chose to write my paper on what exactly "Insider Trading" is. Insider trading has to do with
stocks, on the stock market. The stock market is basically an organized place where stocks and
bonds are traded. The members of this exchange usually buy and sell the stocks for others while
charging a commission for doing this work for their clients. Although more and more people are
now trading online ... Show more content on Helpwriting.net ...
It is not always the corporate directors and officers that who find out this information first it can
range from the lawyers to the person that prints out the companies' financial papers. Basically
anybody who has knowledge of a companies future weather in being good news or bad, the person
can profit from it. This person can often make profits trading stocks by using the inside information
he has to guide his decisions on buying or selling of the stock. The rule that stops firms from
allowing their insiders to trade is rule 10b–5, which is the SEC's, law against insider trading. Rule
10b–5 comes from 10–b the 1934 act, which is a provision that allows the SEC to prohibit "any
manipulative or deceptive device or contrivance." This basically means that the federal law does not
prohibit insider trading, and the insider trading crime was not defined or expressed in any statues, or
rules administered by the SEC. The federal securities law only offers one cure for insider trading
and that is an injunction against future violations. Some firms think insider trading should be
allowed because if you look at it from a property rights perspective, some firms will be able to
reduce the salaries they pay their employees. Although not all firms believe in this thought for it
wouldn't be as compelling for them and it is unlikely to be advantageous for all firms. The trading
for insiders would reduce their

Corporate Governance And Insider Trading
CHAPTER I
THE CONCEPT OF CORPORATE GOVERNANCE AND INSIDER TRADING
This chapter shall deal with the concepts of corporate governance and insider trading, with
explaining the development of the insider trading laws. It is essential to understand the concept of
corporate governance first, in order to be able to understand the offence of insider trading in detail.
Then the meaning and the concept of insider trading along with its evolution is explained
subsequently in this chapter.
1.1 CORPORATE GOVERNANCE
The SEBI has defined Corporate Governance as "Corporate governance is the acceptance by
management of the inalienable rights of shareholders as the true owners of the corporation and of
their own role as trustees on behalf of the ... Show more content on Helpwriting.net ...
The following things can be expected to be ensured by good corporate governance:
Effectual decision making by the management with proper disclosures necessary from time to time
to accomplish the corporate objectives.
The business transactions are expected to be carried out transparently by the management.
All the statutory and legal obligations to be followed without any breach of the law.
Interest of all the stakeholders to be protected by the actions of the management.
The maintenance of ethical conduct and commitment to the values while carrying out the business
transactions.
In other words, corporate governance is the acceptance by management of the inalienable rights of
shareholders as the true owners of the corporation and of their own role as trustees on behalf of the
shareholders. It deals with conducting the affairs of a company such that there is fairness to all
stakeholders and that its actions benefit the greatest number of stakeholders. In this regard, the
management needs to prevent asymmetry of benefits between various sections of shareholders,
especially between the owner, managers and the rest of the shareholders.
A good Corporate Governance is integral to the very existence of a company and strengthens
investor 's confidence by ensuring company 's commitment to higher growth and profits. Broadly, it
seeks to achieve the following objectives:
A properly structured board capable of taking

SEC Vs. In Re Cady Roberts & Co.
You overhear a conversation in a restaurant about a yet–to–be–announced merger. You purchase
securities of the target firm and reap a handsome profit in three weeks' time. What does the law
expect you to do?
There are two types of insider trading, legal and illegal. Corporate insiders (officers, directors or
employees) buying and selling their own stock is designated legal insider trading. In contrast, illegal
trading involves a party buying or selling securities based on a breach of a fiduciary duty or other
relationship of trust and confidence, while in possession of material, nonpublic information about
the security. Violations of insider trading can include the act of tipping (tipper), trading by those
who have been tipped (tippee), and ... Show more content on Helpwriting.net ...
Without exception, insider trading relies on two elements: the existence of a relationship that gives
access to corporate information, either directly or indirectly, not meant for the personal benefit of
anyone, and unfairness involved in a person taking advantage of information knowing it is
unavailable to those with whom he is dealing. In SEC v. Texas Gulf Sulphur Co., the Cady ruling
was supported specifying that anyone with insider information is required to disclose the
information or refrain from trading3. Consequently, the court held that anyone trading on insider
information was committing fraud against all others in the market. The US Supreme court reversed
the criminal conviction in the case of Chiarella v. United States, a printer in the possession of
nonpublic information regarding a M & A documents that he was hired to print4. The SEC then
instituted rule 14e–3 of the Exchange Act in which it became illegal for anyone to trade upon
material nonpublic information ... if they knew the information was from an

Insider Dealings in Nigeria
"EXAMINE THE EFFECTIVENESS OF THE PROVISIONS OF THE INVESTMENT AND
SECURITIES ACT (ISA 2007) ON INSIDER TRADING AGAINST THE BACK DROPS OF THE
PROVISIONS OF THE CAMA 1990 AND THE COMMON LAW ON THE DUTIES OF
DIRECTORS OF COMPANIES IN PREVENTING INSIDER RELATED OFFENCES AND
PROTECTING THE INTEGRITY OF THE SECURITIES MARKET IN NIGERIA PRIOR TO
AND IN THE MODERN ERA OF THE INTERNET."
SUBMITTED BY
AYODELE DOYINSOLA .O
LAW/2007/100
DEPARTMENT OF LAW
OBAFEMI AWOLOWO UNIVERSITY
ILE–IFE OSUN STATE
TO
PROFESSOR M.T. OKRORODUDU–FUBARA
IN PARTIAL FULFILMENT OF THE COURSE "LAW OF BUSINESS ASSOCIATION" (BUL
502)
Concept of Insider dealing
One of the areas of company law in which the general equitable rules seem to be inadequate to
protect the ... Show more content on Helpwriting.net ...
For example, a fiduciary relationship exist between two parties, when a party expects the other to act
for him in such a manner as he would act in absolute honesty, faithfulness and diligence, not
minding the fact that he is acting for someone else. If he cannot steal his personal money, then he
cannot steal the money put in his care. Common law provides quite a number of duties of a director
to a company, however, only few of them relates with insider dealings. Some of these duties include:
The duty to act bonafide in the Company's interest.
A director is expected to act honestly, diligently and faithfully in the best interest of the comp– any.
This duty is however relative. What happens to be in the best interest of the company to a director
may differ from the shareholders view. In the case of Park v. Daily Times Ltd., the court held that
the directors had acted improperly and not bonafide for the company's interest, when they made
redundancy payments to the company's employees on the cessation of the company's business. Duty
to avoid conflict of Interest.

In the performance of his duties, a director must not allow a conflict of interest between him and the
company. To be strictly avoided are instances in which a director's personal interest would conflict
with the interest of the company, which he is expected to protect. This was the situation in Industrial
Development Consultants Ltd.

Insider Trading and Market Efficiency
Journal of Finance and Accountancy Insider t nsider trading and market efficiency: Do insiders buy
low and sell h high? Stephanie Roddenberry Longwood University Dr. Frank Bacon Longwood
University ABSTRACT The purpose of this study was to test the semi–strong form efficient market
hypothesis strong using insider sale and purchase announcements and their effect on the risk
adjusted rate of return of the firms' stock price. Past studies using varying methodologies, including
the risk adjusted model for event study methodology as used in this study, have found conflicting
results have regarding the form of market efficiency upheld in the United States. By definition, a
semisemi strong form efficient market would not allow any investor to ... Show more content on
Helpwriting.net ...
sider BACKGROUND Efficient market theory examines how accurately stock prices signal
resource allocation alloc and fully reflect all available information. Fama (1970) introduced the
efficient market hypothesis stating there are three forms of efficiency: weak, semi strong, and
strong. A market semi–strong, that incorporates all historical information is said to be weak form
efficient, while one that responds to all publicly available informatio is semi–strong efficient. In a
semiinformation –strong efficient market, prices instantly change to reflect publicly available
information. A strong form market, strong responds to all information, both public and private. The
hypothesis claims that achieving above average returns on a risk adjusted basis is impossible (Fama
1970). (Fama, The lowest level of market efficiency, weak form, states that the market only reacts to
historical information. This means that no one can earn above normal returns based on published
historical information; however, the market does not quickly react to new public or private
information. It may be possible then, in a weak form efficient market, to obtain abnormal returns
form using either new publicly available or private insider information (Fama 1970). (Fama, A
semi–strong form market is more efficient that a weak form, as it reacts to publicly strong available
new information quickly and share prices adjust to reflect the market's reaction. share Obtaining

Insider Trading, Stock Market And Other Instruments
Introduction
When the global financial markets continue to expand, the derivatives, stock market and other
instruments continue to increase. In recent years, insider dealing as one form of trading that has
received considerable interest. The America was the first country to enact insider dealing regulation
and also continues to aim the regulation in the world. UK represent legal regime on insider trading
also takes the Directive of European Parliament into consideration. In this essay, first briefly point
out the basics concepts and the historical development about the laws of insider dealing in the USA
and the United Kingdom respectively and then evaluated the role of the criminal law in finance,
with reference to insider dealing rules ... Show more content on Helpwriting.net ...
Thus the regulation or law of Insider trading is strongly skewed towards US law.
In order to keep the fair behavior on the stock exchange market, the first regulation was adopted in
1934. It was a part of a New Deal era securities laws and was also an answer to the 1929 market
crash and subsequent depression. Meanwhile this Act were the protection of the investors engaged
and the maintenance of public confidence of the securities markets.
Most popular Rule 10b–5 promulgated by the SEC (Securities and Exchange Commission) pursuant
to the authority granted it by Section 10(b) of the Securities Exchange Act, although insider trading
prohibition technically is grounded in the federal securities regulation statutes now. The SEC
adopted new rules which named 10b5–1 and 10b5–2 to resolve two insiders trading issues where the
courts have disagreed. Rule 10b5–1 provides that a person trades on the basis of material nonpublic
information if a trader is "aware" of the material non public information when making the purchase
or sale. Meanwhile, Rule 10b5–2 explains how the misappropriation theory applies where in rule
provides that a person receiving confidential information under circumstances specified in the rule
would owe a duty of trust or confidence and thus could be liable under this theory.
In 1961, the SEC applying a broad explanation of the provisions in the case of In re Cady Roberts &
Co., held that these provisions could apply to any insider trading

Texas Gulf Sulphur Case Study
Case Study #1
#1– Did any of the following individuals in Texas Gulf Sulphur violate civil or criminal law by
breaching a Fiduciary duty or engaging in insider trading:
Drake: A geologist and junior member of the exploration group who was authorized with
confidential information. Although Stephens made it clear that the information about the Canadian
Shield should be kept within the selected group of employees, Drake desecrated a Civil Law, the
Security Law; and became an inside trader by making Investment decisions based on information
that the general public was not aware of. ... Show more content on Helpwriting.net ...
Huntington: He was the corporate attorney of TGS. You would think that as an attorney he knows
that his job is to look for the benefits of the company. As like the president the attorney can't do
anything that's against the interest of the company. Huntington has never before bought calls on any
stock, but knowing that what he was doing was against the law, he still went ahead and bought 100
shares of TGS stock. Huntington was involved in insider trading.
#2– What is your assessment of the Texas Gulf Sulphur press release of April 12?
My assessment on the Texas Gulf Sulphur press release of April 12 was that due to the rumors that
"a major ore strike is I the making," and the unauthorized report being published, there was an actual
press release. In my opinion, if it wasn't because of all the rumors Stephens, Fogarty, and
Huntington wouldn't have agreed to have a press release, which was only held to stop the rumors
and give false information to the world on their discovery.
#3– Did Martha Stewart engage in insider trading? If so, by what theory?
Martha Stewart was engaged in insider trading by the novel theory of

Insider Dealing
1. Introduction Insider dealing has been affecting the efficiency of stock markets in different places
like United States, United Kingdom and Australia. Hong Kong is of no exception. Basically, insider
dealing refers to the trading of a corporation's stock or other securities by individual with potential
access to non–public information of the company. The law of insider dealing in Hong Kong
provides a much more detailed definition and is very comprehensive. However, when it comes to
enforcement, it seems not very effective. In the following, the law of insider dealing in Hong Kong
will be summarized. After analyzing the comprehensiveness of the law, the underlying reasons of
the difficulty in enforcement will be identified. Some ... Show more content on Helpwriting.net ...
The definition of "derivatives" is also very wide, and includes options and warrants, whoever they
are issued by, as well as rights and interests in respect of listed securities (or other derivatives). In
addition to the thorough explanation about the fundamental concepts of insider dealings, the law
also provides detailed statements about some common scenarios of insider dealings which are not
regarded as market misconduct, interest in securities, penalties and general defenses. 3. Pros and
cons 3.1 Advantages The law defines different terms very broadly which is very effective in
prosecution. Take the definition of "connected person" as an example, according to the law, a
corporation may connect to another corporation, a director or employee or a substantial shareholder
may connect to a corporation. If the insider has a fiduciary duty to the company, such as that held by
a director, the company may claim any profits he makes from abuse of his position. The duty is held
to the company, rather than to individual members and so a member who sold his shares to directors
who had information affecting the future value of those shares was unsuccessful in a claim against
those directors. But you can try to bring legal action against the company instead of the director. 3.2
Disadvantages However, the law is not stringent enough. This can be illustrated by the comparison
between Hong Kong and the UK insider dealing law. For

Case Briefing and Problem Solving Essay
Issue Spotters Delta Tools, Inc., markets a product that under some circumstances is capable of
seriously injuring consumers. Does Delta owe an ethical duty to remove this product from the
market, even if the injuries result only from misuse? Why or why not?
I think Delta Tools, Inc. doesn't owe an ethical duty to remove the product from the market unless
the company doesn't warn its customers of the danger they can meet upon misuse of the product. If
the company takes all the measures to warn their customers of the danger of the product once it's
misused, customers have knowledge of the risk and voluntarily assume it. For example, the use of
any antibiotics with the alcohol can lead to many harmful processes and activities. ... Show more
content on Helpwriting.net ...
In addition, Brody and Crawford claimed that THC, in its March 19 and April 24 press releases,
materially misled them about THC's intention to sell the company. The district court granted the
defendant's motion to dismiss the claims. The plaintiffs appealed to the US Court of Appeal, Ninth
Circuit.
ISSUE Are Brody and Crawford the proper plaintiffs to sue THC for damages for violation of the
statute and rule¹ regarding the insider trading?
DECISION No. US Court of Appeal, Ninth circuit, affirmed the district court's decision to dismiss
Brody and Crawford's complaint for failure to state a claim upon which relief can be granted.
REASON The Court noted that plaintiffs did not meet a contemporaneous trading requirement, a
judicially–created standing requirement, which specified in Section 14(e) and Rule 14e–3 that the
plaintiffs must have traded in a company's stock at about the same time as the alleged insider. In
addition, the Court decided that the plaintiffs' complaint must specify the reason or reasons why the
statements made by THC in its press releases were misleading. Brody and Crawford argued that in
order for statement not to be misleading, "once disclosure is made, there is a duty to make it
complete and accurate", for which the Court found no support in the case law. The case law² only

Insider Trading
Insider Trading
In our economic economy today, we have gotten a few high profile cases were people have tried to
make money by using illegal tactics, and these are illegal tactics are based on the insider
information. These high profile cases were on Martha Stewart and President George W. Bush. This
is why I chose to write my paper on what exactly "Insider Trading" is. Insider trading has to do with
stocks, on the stock market. The stock market is basically an organized place where stocks and
bonds are traded. The members of this exchange usually buy and sell the stocks for others while
charging a commission for doing this work for their clients. Although more and more people are
now trading online stockbrokers are not as in demand ... Show more content on Helpwriting.net ...
So shareholders and managers can share the information they have with one another, which could
hardly be considered unfair to the shareholders. Then there are others who still believe insider
trading should remain illegal because it is unfair along with many other reasons. During the early
days of regulating insider trading the system searched for an internally consistent justification for
banning such trading. That was culminated by the decisions the supreme court handed down in the
early 80 's on two important insider trading cases the first was Chiarella v. United States and the
second was Dirks v. SEC. These were the two cases that brought some sense of what the law meant
by inside information regarding the insider trading law. Then in the early 1990 's is when the
judgment was used again in the two cases involving insider trading the first was criminal was Ivan
Boesky and the second was Dennis Levine. Both of these men were sentenced to jail, and boesky
was banned from ever trading again and also ordered to repay 100 million in illegal insider trading
profits. Then with the prosecution of Boesky it unveiled a ring of insiders and led to Michael
Milken, the famous junk bond deal maker for Drexel Burnham Lambert. Junk bonds are of fairly
high risk, but they also pay out at a higher rate of interest. These junk bonds were commonly used to
raise capital in the early 80 's when companies needed money to buy out other companies. So in

Mark Cuban and Sec
Mark Cuban was offered that the Web search engine named Mamma.com was going to offer $16.6
million worth of new shares to private institution and other qualified investors. The information
about PIPEs is material since it's not yet publicly announced and that info could affect the
shareholders' behaviors. 1. Why didn't the SEC 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. ...
Show more content on Helpwriting.net ...
SEC alleged that Mark Cuban violated misappropriate insider trading. To be qualified as
misappropriate insider trading, an individual wrongfully obtains (misappropriates) inside
information and trades on it for her or his personal benefit. In this case, Cuban actually traded his
shares based on the material inside information he was told and saved him $750,000 in losses.
Wrongful misappropriation means violation of a fiduciary duty.
The Court found that Cuban had not "misappropriated" any material non–public information
because he had not violated a "legal duty to refrain from trading. Cuban had not promised that he
would not trade after learning about a PIPE offering. The judge also said that the SEC failed to show
that Cuban undertook a legal duty to not use the information he learned from those two phone calls
with Mamma.com representatives. Mark Cuban did not have any fiduciary duty to not act upon the
information. The Mamma.com CEO asked Cuban to keep their conversation confidential. However,
that didn't prove that Cuban had a legal duty to Mamma.com that would prohibit him from selling
his shares based on what he was told. He just promised to not disclose the information to the others,
not promised to not act upon what someone told him.
Besides, there was no evidence that he actually agreed that day to keep anything confidential. He
never agreed on the phone that he would

Insider Trading Scandal
Insider Trading is the illegal activity of buying and selling a company's stocks while using secret
information from a person who works for the company (Merriam–Webster, 2015). This illegal
activity happens all the time in the world but it is also difficult to spot when it occurs. This is true
because only a few people know about the information this is being obtained illegally. A good
example would be the fantasy football case that happened in October of 2015. This case involved an
employee named Ethan Haskell who worked for the notoriously known DraftKings website (Press,
2015). Both DraftKings and FanDuel employees are not allowed to play daily fantasy sports through
the website that they work for. This is true because the employees who ... Show more content on
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People would have to draft their teams with groups of people and manually do the scoring.
However, we are lucky enough that our species has created technology that is advanced enough to
automatically do the scoring and keep track of all of the stats for us. Even though it's a good perk
that we have technology to do this for us, it is terrible for the people who do not have the insider
trading. Without insider trading, plenty of people who play the fantasy sports are at a downfall
compared to the competitors with the insider trading. The fact of the matter is that insider trading is
impossible to stop just like anything else is. For example, it would be absolutely astonishing if we as
a world could stop murder or theft. But each and every individual acts and thinks differently than
one another. For just that reason alone, it will be almost next to impossible to stop insider trading in
any given situation, from fantasy football, to selling a stock. As long as one person gets to benefit
from it, it will continue to occur. Daily Fantasy sports is an amazing industry when it comes to
revenue and popularity. By the year 2020, daily fantasy sports are project to pull in over $14 billion
in

Responsibilities for Offerings of Securities
WARDLAW, Circuit Judge:
J. Thomas Talbot, a member of the board of directors of Fidelity National Financial, Inc., a
Delaware corporation, traded on confidential information about the impending acquisition of
LendingTree, Inc., which he received in his capacity as a Fidelity director. We must decide whether
Talbot can be held liable under § 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), 15
U.S.C. § 78j(b), and Rule 10b–5, 17 C.F.R. § 240.10b–5, promulgated thereunder, for
misappropriating information from Fidelity, in the absence of a fiduciary duty of confidentiality
owed to LendingTree by Fidelity or Talbot when he executed the trades. We hold that Talbot can be
held liable, under the circumstances here, but that a ... Show more content on Helpwriting.net ...
Make sure you don't do anything with the stock." Thompson said this "plenty loud. It was loud
enough to hear him." All Board members present at the meeting, except for Talbot, considered the
LendingTree information to be confidential.
Various directors testified at depositions to their understanding of how far along the negotiations had
proceeded between LendingTree and the unnamed acquirer, as conveyed by Foley: "far along, and it
would be announced as a deal shortly thereafter" (Thompson); "advanced discussions" (Bickett);
and that "it looked like there was going to be a transaction" (Christensen). Talbot interpreted Foley's
words as far less definite, understanding the information about LendingTree to be a "rumor," not a
"factual statement." Talbot wrote "LENDING TREE" at the top of his copy of the meeting agenda;
those were the only notes he took during the meeting.
On April 24, 2003, two days after the meeting, Talbot purchased on margin 5000 shares of
LendingTree at approximately $13.50 per share for a total of $67,500. Talbot testified that Foley's
comments at [ 530 F.3d 1089 ] |
the April 22, 2003 regarding LendingTree "triggered [his] conduct on April 23rd to look into
[LendingTree] more carefully." A number of factors influenced his decision to purchase the stock:
Fidelity had invested in it; it was a real estate company,

Insider Trading Essay
It can fairly be said that an Investor considering an investment decision (whether to purchase, sell or
hold stock) in publicly traded company acts on the basis of extensive information which is available
by corporation to him until the last moment of his investing decision and try to determine the fair
price of corporate stock. In the light of continuous creation of a particular impression of corporate
affairs by the corporation, new information by corporate can vanish the importance of previous
available information to investor. In the scenario only one kind of investors can get advantage over
others, who is either very close to corporate operation (corporate officers) or can access nonpublic
price–sensitive information to corporation ... Show more content on Helpwriting.net ...
For example, Manna (1966) states that insider trading should be allowed because insider trading is
the most effective way to compensate to insider to generate new economic information in firm.
Hirshleifer() states that for insider, good information is as good as bad information to make profit
but this profit may not be related to economic contribution of insiders in corporate. Proponents of
insider trading suggest (Carlton and Fischel (1983) that insiders are the most informative member in
the market, and by trading, they bring new information to the markets and causing prices to change
toward their true value and, therefore, promoting the optimal allocation of resources. On the other
hand, Scholars (Benabou and Laroqu, 1992) say that insider trading may provide incentive to
corporate insiders either to delay the announcement of price–sensitive information to public or to
prevent to release price sensitive information, which in turn makes stock prices less informative.
However, Georgakopoulos (1993) argues that restriction on insider trading may have little adverse
impact on market efficiency but it reduces the cost of transaction that burdens on uninformed traders
Another concern relates of insider trading of market efficiency of stock market. In his classical study
Fama (1970) proposes efficient market Hypothesis, which suggests that stock price reflects all
available information (historical price, public and private) in

Essay Martha Stewart's Insider Trading
Martha Stewart's Insider Trading
Martha Stewart, the countries top icon for homemaking has been in the eye of the public since June
2002, but not for her craftiness or culinary abilities. Stewart instead has the spotlight on her for
crimes of insider trading. A tip from her former broker Peter E. Bacanovic, persuaded her into
selling her IMClone stock after sharing information about a close friend of Stewart's getting rid of
his shares. Stewart's companion, Sam Waksal, was also the chief executive of IMClone Systems Inc.
IMClone Systems is a well–known company specializing in the research and development of
therapies treatments of cancer. The stock selling was provoked due to a leak of information about
The Food & Drug ... Show more content on Helpwriting.net ...
The question being debated in the business field is who is to blame in this scenario, and if it is
Stewart, should her punishments be so severe? Some seem to think that the charges and trails are
ridiculous. "The Securities and Exchange Commission should leave people like Stewart alone and
concentrate on real corporate crooks."(Glassman). However others look at it as something that
cannot be tolerated and believe that if she is not punished to the maximum, then others will not be
afraid to follow in her footsteps. On the other hand there are many people that think that people who
are high up on the corporate chain should be prosecuted just as hardly if not harder then regular
criminals because of all their benefits from the government. As for the average high class citizen
they believe that Martha should be prosecuted because they think she is wrong and giving their class
of people a bad name, which black balls the whole brokerage industry as well as certain firms such
as Merrill lynch. Juror of the Stewart Trail, Chappell Hartridge, says "Maybe it's a victory for the
little guys who lose money in the Market because of these kinds of transactions," Or maybe its just a
sigh of relief to the rest of the guys who are doing the wrong thing still and wanted to have someone
else get caught in the process and are just happy that it wasn't them. But not to play devils advocate
but maybe its just the issue of having a

John Johnson: Insider Trading And Inside Information
Insider trading is the buying or selling of a security by someone who has access to material
nonpublic information. The securities act of 1933 and 1934, was enacted to protect the general
public from insider trading; as using this valuable information would give insiders unfair market
advantages. If an individual chooses to act on insider information and take a position in the market,
then they would be committing insider trading which is illegal. John Johnson clearly had a complex
situation that involved stock trading, option trading, inside information and a work culture that
welcomed high returns over the means of getting them. John's boss once told him, "We are going to
have to let you go, clearly you have not been trading on inside information as you didn't have any
excess returns." John comes from a trading culture in Silicon Valley, where it is mandatory to give
up information in order to receive information. One directional relationship did not exist within this
quid pro quo trading atmosphere. However, its important to remember that not all of the information
that John received was material or insider information. For example, if John received information
that could stand alone without creating company's financial position then this would be acceptable.
Unfortunately, this is when the "grey areas" ... Show more content on Helpwriting.net ...
Pressure was the first area he covered. During 2008, John recently got fired in a post bear market
and was also undergoing a divorce. While reviewing his personal finances, he realized he had
numerous monthly obligations that summed up to $20,000. In addition, he knew that he was going
to be unemployed for the next two years and would run through all of his funds within 12 months.
Missing any payments such as: child support, alimony payments or mortgage payments, would
result in jail time or an eviction on his

The And Gas Exploration Corporation
Frankie Yankovich, who is a registered securities broker employed by Blanche Carte INC., made
statements to potential investors that he had inside information about GLUT. GLUT is an Oil & Gas
Exploration Corporation whose stock was traded in the over–the–counter market. The statements
made by Yankovich include (1) that vast amounts of gold had been discovered in Yukatan and that
GLUT had options on thousands of acres in the gold–producing regions of Yukatan, (2) the
discovery was "not publicly known, but would be subsequently announced", and (3) when this
information was made public, GLUT stock would increase to $10.00 to 415.00 within a short period
of time and might increase to $100.00 per share within a year.
When these potential ... Show more content on Helpwriting.net ...
A decentralized market, without a central physical location, where market participants trade with
one another through various communication modes such as the telephone, email and proprietary
electronic trading systems. In an OTC market, dealers act as market makers by quoting prices at
which they will buy and sell a security or currency. A trade can be executed between two
participants in an OTC market without others being aware of the price at which the transaction was
effected, making an OTC market much less transparent than exchanges. OTC markets are also
subject to fewer regulations. OTC markets are primarily used to trade bonds, currencies, derivatives
and structured products.
Over the counter markets are less transparent because of the nature of the sale. Securities are sold
quite literally over the counter, behind closed doors, with a negotiated price that are not on the listed
exchange. There are also less regulations and usually deal with smaller companies that do not fit the
normal regulations to be listed on the exchange.
Moving forward, the investors are are using Section 10(b) of the Securities Exchange Act as their
main defense. The Securities Exchange Act of 1934 was created to provide governance of securities
transactions on the secondary market and regulate the exchanges and broker–dealers in order to
protect the investing public. All companies that are listed on stock exchanges must follow these

ASIC V Citigroup Case
INTRODUCTION
ASIC v Citigroup case was one of the biggest investment banking case of the year where the federal
court dismissed ASIC's allegation of breach of insider trading and the takeover of an advising party.
Citi group received applause from commentators for their current practices, and the case fiduciary
duties were affirmed upon the legal bases the investment banks and the effectiveness of the Chinese
walls as a mean of dealing with potential conflicts (Ritchie 2008, p.1). Chinese walls are barriers
which were formed mainly to avoid conflicts which results in ethical practices rather than separation
within an organization, in this case of investment banking the Chinese walls may separate a person
who possess information to make investment decision to those who make investment decisions
which could influence those decisions (Tesarsch 2007, p.632).
Upon further analysis the case was deemed premature due to unqualified win for the investment
bank. Most of ASIC's claims collapsed which saved Citigroup, where the court's found out that there
was no fiduciary relationship between both parties. Citigroup is a large firm which has various
divisions such as equities trading and investment banking, the private side of the business is where
the employees of investment banking sector are exposed to market sensitive and confidential
information and the employees who work in other sectors such an equities trading is called the
public side of the business. The public side of

Effects of Illegal Insider Trading Essay
"Insider trading" is a term that most investors have heard and usually associate with illegal conduct.
But the term actually includes both legal and illegal conduct. The legal version is when corporate
insiders–officers, directors, and employees–buy and sell stock in their own companies. When
corporate insiders trade in their own securities, they must report their trades to the SEC. 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
the security. Insider trading violations may also include "tipping" such information, securities
trading by the person "tipped," and securities ... Show more content on Helpwriting.net ...
But, in a case like that of Enron, their stock price was enormous since it was not evident that they
were cooking their books. This would not have happened if insider trading were legal. Investors
would not have lost most of their money investing in a firm like Enron and taking the hit when they
were investigated for insider trading and fraud. The Enron insiders would have sold their shares and
the price would have corrected itself and the disaster might have been avoided. Investors could have
allocated their money towards more promising investments, which in turn would increase market
efficiency. With legalizing insider trading, stock prices would be more efficient with the ability to
acquire more information. Illegal trading is still common and some may say it is actually growing.
This puts law–abiding investors at a disadvantage. Insider trading bans allow for some comparable
behavior. For example, if I were to work for a company and hear that we were going to post a profit
this quarter, I would not sell my shares. This could be considered insider non–trading and is
currently legal, but can basically be considered insider trading. There are plenty of loopholes in the
current system. With increased information, we might be able to smooth the volatility of the market.
It will lessen the exposure to bad information and will benefit the market's participants. Profits being
made from the information will expedite the flow of information. There is a gray area

Insider Trading Is The Tip Of The Iceberg
Executive Summary ABC News reported that Oliver Curtis, who is investment banker, was
sentenced guilty of insider trading. Since 1973, there have only been 79 insider trading cases
brought before the courts, in what lawyers said could just be the tip of the iceberg. Insider trading
occurs where a person trades in shares or other financial products with possession of confidential
information that is not available to public. Insider trading is also prohibited under Div. 3 of Pt. 7.10
of Corporations Act. Some of researches insisted that insider trading is necessary as a price
accelerator and brings the price of securities to their proper level more quickly. However, most
experts such as financial experts, or lawyers, insist that insider trading is harmful to market, small
investors, or traders. The most common view of insider trading is harmful because it brings
unfairness to the person, who do not have the inside information. With these arguments and Oliver
Curtis case, this report define concept of Insider trading and relevant terms. After that, it will
analyse advantageous side and disadvantageous side of insider trading, and then what benefit could
get from insider trading. As a developed argument, this report will discuss why insider trading is
harmful to market and need to be prohibited with Oliver Curtis case.
1. Introduction ABC News reported that Investment banker Oliver Curtis was found guilty of insider
trading – the latest in a string of

Insider Trading
Insider Trading
Should it be legalized?
An objective look at the different arguments given by each side of the controversial topic of whether
insider trading should continue to be illegal or not. Also included is a subjective view of the author's
stance on the subject.
Insider Trading
Should it be legalized?
An objective look at the different arguments given by each side of the controversial topic of whether
insider trading should continue to be illegal or not. Also included is a subjective view of the author's
stance on the subject.
Mariah Frahm
2/24/2013
Mariah Frahm
2/24/2013
Table of Contents Introduction 2 Arguments For 2 Market Efficiency 2 Proprietary Research vs.
Insider Information 3 Victimless Crime 3 ... Show more content on Helpwriting.net ...
So if the market isn't affected by which way you obtain the information, why is one way illegal and
the other legal when it is the exact same information?
For example, if I overheard a conversation by a CEO (or even if the CEO told me directly) revealing
a morsel of information pertaining to their business that had not become available to the public yet,
that would be an illegal piece of information to trade on. On the other hand, if I went to that CEO's
business every day and interviewed their customers or managers and my efforts turned up the same
information, that information would be absolutely legal to trade on because it was the product of
research even though it is the same exact information that was obtained by the CEO in the first
place.
Victimless Crime
There is no guarantee that there is always a victim of insider trading, more often than not, there is
actually no victim at all. When a person trades on the market, whether using legally obtained
information or illegally obtained information, they have no idea who is on the receiving end of their
trade. That person trading does not in any way have a direct impact on other people and whether or
not they are interested in buying or selling and that does not matter whether it is legally obtained

information or illegally obtained information or whether the trading party profits or loses. The
person who is initiating the trade is solely doing it

assignment 3 Essay
ASSIGNMENT 3: FREESCALE SEMICONDUCTOR INC.
Submitted by
Mohammed A Khan
Submitted to
Prof: Wendy Achilles
Course: Acc 562 Advanced Auditing
Dated: 12–14–2014
Introduction
Freescale Semiconductor Inc. (FCI) is a global leader in embedded processing solutions, providing
industry leading products that are advancing the automotive, consumer, industrial and networking
markets. From microprocessors and microcontrollers to sensors, analog integrated circuits and
connectivity –
FCI's technologies are the foundation for the innovations that make the world greener, safer,
healthier and more connected.
Continued from previous slide
Some of Free scale's key applications and end–markets include automotive safety, hybrid and all–
electric ... Show more content on Helpwriting.net ...
Internal Control Tool to avoid a fraud: Under this case Role of independent Partner – responsible for
sharing insider information to anyone. His actions should be monitored by other authorized persons
of E & Y company since this is very sophisticated matter and also involved a reputation of the
company.
Market reaction after involvement – E & Y should closely monitor the market fluctuations on that
specific share after their involvement.
Monitor the beneficial – E& Y can ask for the trading report for 2 weeks from the share trading
company of that particular entity (Freescale Semiconductor, Inc.)
How Murdoch can avoid this allegation
Means of communication – It revealed that Murdoch and Gansman communicated about 400 times
via text massage and telephone which is recordable.

Physical communication is not recordable with substance. No. of beneficial – Murdock also leaked
the information to her relatives.
Financial Relationship – It was revealed that Gansman and Murdoch
had
financial
relationship
which
is
reasonably understandable to the parties who are questioning that particular leaking.
Auditor's responsibility in terms of consulting and audit engagement
Use – Consulting engagement of the auditor is an internal service to the company whether
may be an
investment will be feasible or not. But Audit engagement

The Crime Of White Collar Crime
Crime is such a general word, and describes a whole conundrum of activities that are seen as
unlawful. The oxford dictionary defines crime as "an action of omission which constitutes an
offence and is punishable by law". There are many different types of crimes, and they are classified
based on the seriousness of the crime. Minor crimes/offences, for example a traffic offence, are
called misdemeanors. More serious crimes, like murder, are called felonies and are punishable by
more than a year in prison. When people hear the word crime, they most often associate it with a
dangerous, violent act. There are crimes that are not violent in nature, but are still considered
criminal acts because of their nature and their purpose. White–collar crime is one of those types of
crimes that are non–violent but have a great impact on its victims.
What is White–Collar Crime?
White–collar crime is "generally identified as non–violent crimes that public officials and business
people commit predominantly for their own personal gain". Edwin Sutherland came up with the
term "white–collar crime" to explain the crimes that both middle class and upper class people
committed in the course of their business activities. White–collar crime is so often neglected as
crime, that many people don't even consider it as a crime until they are the victims. People don't
understand that the effects of white–collar crime are much higher than other crimes. If we look at it
from a monetary perspective, the costs

Inside Information: The Enron scandal in 2001
The use of insider information is illegal in the United States. Insider information is stock related
information that can be obtained many ways to gain large, abnormal gains in the stock market. A
popular way to gather inside information is from direct employees of the company. Information on
stocks can either be illegal or legal. If the information is publicized for all current or future investors
to use, then it isn't illegal. Illegal information becomes unlawful when it becomes privatized from
the public, and to be only used by investors in the stock market. The action of using insider
information isn't considered illegal until the information is used in a stock market located in the
United States, most commonly the New York Stock ... Show more content on Helpwriting.net ...
If it were legalized, then Chiarella would of continued invest without any problems. There have
been times when the government took the liberty to supply a beginning investor with ways on how
to invest ones money wisely. Alan D. Jagolinzer, from the Standford Graduate School of Business
took the liberty to advise the public on how to invest without getting into legal trouble with the US
government. Jagolinzer goes on to say, "One should not observe abnormal trade returns if
participants comply with the rule's proscription that trades be planned absent private information"
(Jagolinzer). This quote from his article titled, SEC Rule 10b5–1 and Insiders' Strategic Trade,
illustrates that one should not have abnormal gains if they comply with the rules. If insider trading
were legalized in the United States investors wouldn't need to worry about the information received
is publicized or non–publicized. This would ease the the pressure off investors and allow them to
strategically trade stocks while still using Jagolinzer's strategized way of investing while still
complying with the rules. Many investors argue that insider trading should remain illegal. I feel
investors want this for a few reasons. First, it would show abnormal gains of those who use it. Even
if it were legalized, many investors wouldn't know how to get the information to use for their
personal use. Inside information isn't for

Germany was the last European nation to ban the insider...
Germany was the last European nation to ban the insider trading which were the consequences of
the EC directive and subsequent infringement action for failure of non–compliance. Hence Germany
passed Promotion Act.
The scope of the insider trading prohibition under the Promotion Act is set forth in the Act's
definitions of three key concepts: (1) the insider, (2) insider information, and (3) insider
transactions.
The Insider according to German law classifies into two (1) Primary (2) Secondary. Primary is an
person/persons who by virtue of their relationship with the corporation have access to vital and
strategic information which are confidential in nature and are not suppose to disclose to the public.
Section 13 of the said act gives ... Show more content on Helpwriting.net ...
Section 12 of the German Insider Trading Law provides a fairly complex, and arguably
cumbersome, definition of insider securities,' the insider trading prohibition basically extends to all
securities traded on an exchange or through a transaction otherwise covered by the Insider Trading
Law, this insider securities includes stocks, shares, stock options, debt instrument, it even goes on to
clarify that Derivatives to fall within the purview of the definition in order to stop circumvention of
the law.
Section 14 of the act defines the prohibition of insider dealing; the prohibition as said earlier
distinguishes into two primary and secondary. The object of this section is to prohibit the person
from utilizing, recommending and passing the vital information to the third party.
The German law specifies that the one of the method of preventing the insider trading are the
statutory publication requirement for the listed company. This comprises the ad hoc disclosure
requirement and the requirement to publish changes in major holdings of voting rights.
As far as punishment is concerned, if the person fails to comply with the regulation he would end up
in prison for five years or imposition of fines.
On 1 July 2002 the WpHG was amended and a new provision concerning the disclosure of dealing
by corporate insiders was introduced (directors' dealings). Section 15a of the WpHG stipulates that
dealings by members of managing and

Insider Trading Case
Assume that the Securities and Exchange Commission (SEC) has a rule that it will enforce statutory
provisions prohibiting insider trading only when the insiders make monetary profits for themselves.
Then the SEC makes a new rule, declaring that it will now bring enforcement actions against
individuals for insider trading even if the individuals did not personally profit from the transactions.
In making the new rule, the SEC does not conduct a rule making procedure but simply announces its
decision. A stockbrokerage firm objects and says that the new rule was unlawfully developed
without opportunity for public comment. The brokerage firm challenges the rule in an action that
ultimately is reviewed by a federal appellate court. Using the information presented in the chapter,
answer the following questions.
1. Is the SEC and executive agency or an independent regulatory agency? Does it matter to the
outcome of this dispute? Explain. ... Show more content on Helpwriting.net ...
The Securities and Exchange Commission (SEC) regulates that nation's stock exchanges, in which
shares of stock are bought and sold; enforces the securities laws, which require full disclosure of the
financial profiles of companies that wish to sell stocks and bonds to the public. The SEC can
exercise their power because they are divided among their branches of the government legislature;
rulemaking, executive; enforcement and courts; adjudication. I think it matter to Stockbrokerage if
they didn't do anything illegal and then the SEC came up with new rules, which they are allowed to
make. I think in this case the Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996 should be enforced allowing congress to review new rules before the dispute is

Notification Of New Insider Trading Regulations
[On the Letterhead of the Company]
Date: [●]
To,
The Board of Directors,
[●] Limited
Dear All,
Subject: Notification of new Insider Trading Regulations
As you all are aware that the Securities and Exchange Board of India has recently notified the new
Insider Trading Regulations replacing the two decades old Regulations. Pursuant to the said
notification, the roles and responsibilities of the Board of Directors and Compliance Officer of the
Company have been expanded.
I, the Compliance Officer of your Company, hereby illuminate the new provisions required to be
complied by the Company and the directors of the Company.
Kindly find attached herewith a note on the new Insider Trading Regulations for your reference.
You are requested to take note of the same. Please contact the undersigned for any further
clarification. Thank you.
Yours sincerely,
For [●] Limited
_____________
[●]
[Compliance Officer]
Note on Insider Trading
The Securities and Exchange Board of India ('SEBI') has recently notified SEBI (Prohibition of
Insider Trading) Regulations, 2015 ('SEBI PIT Regulations') to be made effective from May 15,
2015.

The SEBI PIT Regulations put in place an effective legal framework to prevent illegal insider
trading by corporate insiders and persons connected to them on the basis of any unpublished price
sensitive information.
The terms used in this document are defined as follows:
1. Unpublished Price Sensitive Information: Unpublished Price Sensitive

Disadvantages Of Insider Trading
The philosophy of a business reflects the business ethics and values followed by that business. Its
primary objective is to find out the purposes of a business. It is always a debatable topic on taking
sides between business ethics and fiduciary reasonability. To follow business ethics sometimes may
lead to violation of fiduciary responsibility. But businesses of lately started giving more focus to
incorporate ethical practices and value creation in their operations. In today's world business and
ethics are strongly connected. Ethics in general are practised by every individual in his/her own way.
Ethics are omnipresent, each and every decision, action, rational has some kind of ethics behind it.
Even Indian companies operate its business ... Show more content on Helpwriting.net ...
It is a crime committed on the faith of an individual or entity put on an organisation. Insider trading
has both positive and negative sides. It helps disclose scams and irregularities which is its positive
side. ICICI as a bank supports its positive side but give more emphasis on not getting involved in
insider trading negative side.
The negative side of insider trading is related to disclosing and divulging non–public information
the bank contains. Information related to share prices and future biddings affects the original values
of these things if the information is known to a outside party. What is prohibited is the trading by an
insider in breach of a duty of trust or confidence in the stock of a company on the basis of non
public information to the exclusion of others. Insider trading violations may also include "tipping"
such information and securities trading by the person "tipped".
ICICI bank ensures that its employees do not get involved in any insider trading activities. To
protect the integrity of the group and its subsidies ICICI bank makes sure that it does not support or
involve in any kind of insider trading. It makes sure that non–public information regarding trade in
securities does not reach families or friends of any of its employees. ICICI bank placed the
following methods to regulate the insider

Martha Stewart: The Five Biggest Corporate Scandal
Introduction
Businesses use workplace ethics to manage the behavior of the employees. Workplace ethics control
management's moral decisions and keep companies out of any type legal trouble. Some businesses
break down their ethics in an official company code of ethics. Employees of companies that have no
official code should rely on their personal ethics that they were taught and have learned. Ethics is
defined as a moral philosophy or code of morals practiced by a person or group of people. In the
workplace, ethics keeps the employers and the employees from doing the wrong thing. So when an
employer or employee demonstrates unethical behavior what is the outcome? In December 2015,
Fortune listed "The 5 Biggest Corporate Scandals of 2015". Some ... Show more content on
Helpwriting.net ...
The media on the other hand continued to create stories about her lying and her unrealistic
expectations. Martha resigned the stock exchange's board of directors, and as the CEO of the
company she helped develop; Martha Stewart Living Omnimedia. The authorities began to take
notice. In June 2003 she was arrested, and in January 2004 she appeared in court and convicted of
obstruction of justice, securities fraud, and a few lesser crimes. Martha's conviction can with a five
months of a prison sentence, five months of house arrest, and two years of probation. During the
entire ordeal Stewart maintained her innocence. Martha was sent to the Alderson Federal Prison
Camp in West Virginia. Her five–month sentence ended in March of 2005, and she began her five
month house

Martha Stewart's Insider Trading Essay
From being a very successful businesswoman to calling a prison cell home, Martha Stewart has
definitely had an interesting past couple of years. She started her career about 30 years ago with a
catering business and has since built from that becoming the CEO and Chairman of Martha Stewart
Living Omnimedia, Inc. Her success also includes the publication of her magazine Everyday Living,
being the commercial spokeswoman for K–Mart, and having her own popular television show, From
Martha's Kitchen. She had built the reputation of being a public figure with how–to advice on
creations in the kitchen to gardening. Despite these accomplishments, Stewart managed to become
entangled in some insider trading scheme that damaged not only parts of ... Show more content on
Helpwriting.net ...
The investigation traced all the way back to Stewart's earliest involvements with ImClone. It
discovered that Stewart and Samuel Waksal, a co–founder and former CEO of ImClone, had become
friendly in the early 1990s (Carlin 2003). ImClone is a biopharmaceutical company that specializes
in the development of treatments for cancer. They are incorporated with their headquarters in New
York City, and are publicly traded on The Nasdaq Stock Market under the symbol IMCL. Among
several products they have Erbitux, which is their leading product. Stewart and Waksal both had
accounts through the brokerage firm Merrill Lynch, where they shared the same broker, Peter
Bacanovic. Stewart also had history with Bacanovic as it was reported that they have known each
other since the mid–1980s. Stewart had become a client of Bacanovic in the mid–1990s and soon
was one of his high profile accounts. Stewart placed Bacanovic in charge of her pension, personal
accounts, and Martha Stewart Living Omnimedia's 401(k) plan. He also administered Omnimedia's
Employee Stock Option Program and through this became a financial advisor many of the
employees. Through Stewart's account with Bacanovic, she owned 3,928 shares of stock in
ImClone. Since 1992, ImClone had been focusing

Overview of Insider Trading
Introduction On June 4, 2003, the Securities Exchange Commission announced that it was pursuing
charges against investor Martha Stewart and stock broker Peter Bacanovic for securities fraud. The
fraud occurred on December 27, 2001 when Stewart sold stock in ImClone Systems, after receiving
an unlawful tip from Bacanovic, who at the time was working for Merrill Lynch. The SEC also
accused the two of attempting to cover up the insider actions, and of making false statements
regarding the ImClone trades to SEC investigators (SEC, 2003). Stephen Cutler, the SEC director of
enforcement said in the SEC's press release about the charges that "It is fundamentally unfair for
someone to have an edge on the market just because she has a stockbroker who is willing to break
the rules and give her an illegal tip. It's worse still when the individual engaging in the insider
trading is the Chairman and CEO of a public company." This statement and the philosophy behind it
is a central part in the debate about the merits, not so much about the case against Stewart but
against the prosecution of Stewart. The SEC sought redress not only in the form of monetary
penalties and prison time, but it also sought to have Stewart removed from a position as officer of
Martha Stewart Living Omnimedia (SEC, 2003). The Case ImClone was a relatively small
pharmaceutical firm. At the time of the offense, ImClone was awaiting a decision from the Food and
Drug Administration regarding the status of Erbitux,

Insider Trading : Legal And Illegal Trading Essay
Insider trading can be defined in respect to both legal and illegal trading. The legal type is when
corporate insiders–officers, directors, and employees–buy and sell stock in their own
companies1.This type of investing is completely legal and usually encouraged by companies to have
their employees own their stock. The illegal side of 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 the security.
Insider trading is something that comes up in the media every couple of years and can be confusing
to some who don't have a knack for finance related matters. However, for those who aren't familiar,
this type of trading has been happening for as long as companies have been traded publically.
Because there has to be a reason for something to be determined illegal in the United States from the
past, court rulings are usually made based on cases from the past which is referred to as stare
decisis2.With cases from the past like Strong v. Repide (1909) and Goodwin v. Agassiz (1933)
shaping our court decisions in the present, the legality of utilizing insider information for a profit is
still very unclear3. Even with monumental court decisions from the past as stated above, the
definition of an insider began to gain clarity in the 1930's. When the market fell in 1929, the
Securities and Exchange Commission (SEC) was created shortly

Insider Trading Case
Background: DraftKings, a daily fantasy sports company, is being sued by the New York State
attorney general's office and investigated by Boston FBI. The New York State attorney's office
stated that DraftKings games constituted as illegal gambling under the state law. The Unlawful
Internet Gambling and Enforcement Act of 2006 (UIGEA), which establishes the legal guidelines
for online gambling, carves out a safe haven for any fantasy or simulation sports game that has an
outcome that reflects the relative knowledge of the participants, or their skill at physical reaction or
physical manipulation (but not chance), and, in the case of a fantasy or simulation sports game, has
an outcome that is determined predominantly by accumulated statistical ... Show more content on
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1. State and Federal Agencies Lawsuits: The State Of New York have filed a suit and the FBI of
Boston are currently investigating DraftKings. Agencies are concerned that DraftKings is creating
the same atmosphere as gambling, which include addiction and other economic problems. 2. Insider
Trading: DraftKings employee released internal data and won $305,000 on the FanDuel site the
same week. Trading is a big concern because the company will have a high risk of inside trading
among employees who are privileged to sensitive information who may share data with family
members and friends. 3. Leagues Concern: The purpose of fantasy sports is to be a strategic
understanding on how to forecast games and player's performances, there are concerns that this
could influence players, coaches, and referees to corrupt the game for their financial interests(gain).
Analysis: After reviewing DraftKings case and critical issues, I have determined three potential
threats the company may face as followed: State and Federal Agencies Lawsuits: DraftKing in
jeopardy of losing millions of money that could result in downsizing or going out of

Corporate Code Of Conduct Policy Essay

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