insider trading Essay -- essays research papers fc

Insider craftIn our economic economy today, we have gotten a few luxuriously profile cases were people have tried to make m oney by using illegal tactics, and these are illegal tactics are establish 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 melodys, on the stock market. The stock market is basic completelyy an organized gravel where stocks and bonds are traded. The members of this exchange usu anyy buy and sell the stocks for others while charging a commission for doing this work for their clients. Although more and more people are in a flash trading online stockbrokers are not as in demand for their service as they once were which is why Charles Schwab investment firm has laid off more then 1800 workers in this past month, which amounts to a 10 share reduction in the work force. There are certain limitation s on stocks before they behind be traded and listed on the stock market. The New York hackneyed Exchange (NYSE) the largest in the United States was founded in 1970 and handles over 70% of all trades. Then there is the National Association of Securities Dealers Automated Quotations (NASDAQ) which is the fifth largest stock trade in the world. On the stock market there are a lot of illegal things that go on that are unethical. The nigh know crime that goes on is insider trading scandals. The way insider trading occurs is when one person or many people have information on a company that the rest of the man doesnt know of and intention it to make a profit on the stock market. This trading in the United States has been illegal since 1934 and is protected by the Securities and Exchange Commission (SEC). This requires all companies to disclose statements to the public before offering any securities on the public market. The SEC views insider trading unfair to the investors. The SEC a lso regulates stock exchanges, brokers, and dealers in securities, and also sets the margins for bank credit in security trading. So fundamentally the law prohibits insider trading, the way insider trading happens is when corporate directors and officers find bring out information on their company because of the position they hold before anybody else does is known as inside information. This information can and probably d... ...in 1989 the federal jury handed down a 98-count indictment against Milken for violations of federal securities and racketeering. In 1990 Milken pled blamable to security and fraud charges of insider trading, and the more sever counts against him were dropped. The regulation of insider trading cant be judged on the grounds that it promotes the goals and efficiency, market integrity, or fairness. The authorized reason for banning insider trading was for trading stocks based on fellowship the rest of the public was to be thought of as theft. In end this p aper on insider trading is not to show the good of it, just that it cannot be harmful if done the right way. And for those companies not willing to move into in insider trading have a contract with their employees giving them more money in salaries, rather then giving them inside tips on potential stock trading tips.Bibliography1) http//www.SEC.com 2) http//www.encyclopedia.com3) http//www.integrity-interactive.com/compliance/mkt_press_insidertrading.htm4) http//www.bartleby.com/65/in/insidert.html5) http//www.bartleby.com/65/se/Securiti.html6) http//story.news.yahoo.com/news?tmpl=story&u=/nf/20020918/bs_nf/19434