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Let us say you are the managing director of ABC Bank Ltd which is a Stock Market listed company. After weeks of negotiation you know that ICICI bank the country's leading bank has accepted to buy your company and issues shares of its own company to investors who hold shares of your company. As any intelligent investor would know, shares of an ICICI Bank are much more valuable than shares of an ABC Bank. Once this news of ICICI acquiring ABC Bank goes public people will start accumulating shares of ABC Bank so that they can benefit out of the acquisition. This will send the price of ABC Bank skyrocketing. So, knowing this information, if you buy shares of ABC Bank for your personal share trading account before this news goes public, you can sell them off once the acquisition is complete and the share price has exploded. This way you gain an undue advantage and make a profit at the expense of the company.
This is insider trading.
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∙ 13y ago
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When does insider trading occur what government agency is responsible for protecting against the unethical practice of insider trading?
insider trading occurs when someone has information not available to the public and uses the information to profit from trading publicly traded securities. The Securities and Exchange Commission protect against insider trading.
What are the ratings and certificates for Insider Trading - 2006?
Insider Trading - 2006 is rated/received certificates of: Canada:14A
Insider trading laws in Pakistan?
Law on insider trading is incorporated in Ss.15A & 15B of the Securities & Exchange Ordinance, 1969.The Chapter III-A regarding Insider Trading was introduced in the said Ordinance on 02.07.1995.
What has the author Donald C Langevoort written?
Donald C. Langevoort has written: 'Insider Trading Handbook 1987 (Securities Law Series)' 'Insider trading' -- subject(s): Insider trading in securities, Law and legislation
Is insider trading legal in the UK?
No.
What is the Punishment for Insider Trading?
"Insider trading" is a REGULATORY violation not statutory law or civil tort violation.
Was Martha Stewart put in jail?
Martha Stewart was put in jail due to either insider trading or saying she was doing insider trading but lied.
Will Mark Brodsky of Aurelius do jail time for insider trading?
They are suspected to have engaged in insider trading in the Washington Mutual bankruptcy, so it's possible yes.
What has the author Barry AlexanderK Rider written?
Barry AlexanderK Rider has written: 'The regulation of insider trading' -- subject(s): Law and legislation, Insider trading in securities
Insider trading is a financial crime. Defend this statement?
Insider trading essentially means trading financial markets on valuable but nonpublic information which is wildly unfair to all the other market investors who do not have the same access to such info.
What has the author Adi Schnytzer written?
Adi Schnytzer has written: 'The incidence of insider trading in a betting market without bookmakers' -- subject(s): Betting, Horse racing, Insider trading in securities, Mathematical models 'Stalinist economic strategy in practice' -- subject(s): Communism, Economic conditions 'Insider trading and efficiency in a betting market with bookmakers' -- subject(s): Betting, Horse racing, Insider trading in securities, Mathematical models
Is the main job of the SEC to encourage insider trading?
yes
