Essays on Insider Information

Briefing Paper I: Critical Legal Thinking:

United States v. Bhagat: Case Questions: Question 1: Insider trading is the practice in which a person who knows of insider information within a publicity traded company either sells their stock prematurely that they know is going to fall or who tips off a client that the stock is going to plummet in which case, causes the client to sell early and have an unfair advantage in the market, (Cheesemann, 2013). The practice of insider trading is higher regulated by the SEC within the United States. Tipping is the practice of providing insider trading information to another person who ...

Basic Legal Principles

The Federal Security Laws defined under US constitution provides a series of statutes that provides guidelines and regulations to govern activities of the security industry (Hazen, 2003). The Securities Exchange Act of 1934 and the Securities Act of 1933 are the principal statutes under the Federal Security Laws. According to the e

Legal and Ethical scenario presented in the Dracca’s case, the following responses are applicable;

Response 1

Dracca’s senior Vice President of Sales, Bob Marley and his sale representative counterpart Farian did commit a security violation under laws relating to insider trading (McInish, Frino, and Sensenbrenner, 2011). This can be attributed to the manner in which they acted on non-public (insider) information and ...

Insider trading is a phenomenon of an imperfect market and arises due to information asymmetry, which means that some market participants have more information than others. This access to additional information can help them gain more profits than other market participants, and defy the principle of equitable trade. The paper attempts to describe the concept insider trading, how it works and the potential problems caused by it. The paper is divided into four sections. The first section describes insider trading. The second section discusses how insider trading works. The third section identifies the problems associated with it and the fourth ...