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The article I found talks about insider trading and how the

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Adverse Selection: Senate Passes Insider-Trading Ban

The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say that nobody should be allowed insider trading and that it doesn't matter if you are directly involved in the company or an investor.

It appears to me that the approximately 50 members of Congress who have done insider trading feel they are above the law. The only reason why they knew what they did is because Congress was working on legislation that would affect their investment so these people sold their stocks and bonds and investments before the value decreased. The legislation that the Senate passed is being called the Stock Act (Stop Trading on Congressional Knowledge Act). What has made this bill popular and able to pass was the public outrage that has occurred because of some members of Congress doing insider trading. In the end sometimes its better to pass a bill later than not at all. If this legislation doesn't pass the House of Representatives then Capital may be able to keep doing whatever they want.

I think what upsets me the most about this article is that certain members of Congress feel that they can manipulate the rules so that it doesn't apply to them, just us working class people.

www.wsj.com

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There is another angle to this article that you should incorporate into your opinion. The main reason why insider trading laws were created is because it creates an unfair advantage to the market, when insider trading occurs. Even though insider trading does occur (outside of Congress), every act of insider trading has some type of effect on the market, even if it is not apparent to investors, because it directly ...

Solution Summary

The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say that nobody should be allowed insider trading and that it doesn't matter if you are directly involved in the company or an investor.

It appears to me that the approximately 50 members of Congress who have done insider trading feel they are above the law. The only reason why they knew what they did is because Congress was working on legislation that would affect their investment so these people sold their stocks and bonds and investments before the value decreased. The legislation that the Senate passed is being called the Stock Act (Stop Trading on Congressional Knowledge Act). What has made this bill popular and able to pass was the public outrage that has occurred because of some members of Congress doing insider trading. In the end sometimes its better to pass a bill later than not at all. If this legislation doesn't pass the House of Representatives then Capital may be able to keep doing whatever they want.

I think what upsets me the most about this article is that certain members of Congress feel that they can manipulate the rules so that it doesn't apply to them, just us working class people.

www.wsj.com

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See Also This Related BrainMass Solution

Training session to identify shareholder crimes: agency to prosecute, punishment

You are the new training manager for a large corporation that offers employees the opportunity to purchase company stock directly through their paychecks. Using the following scenario and other recent real-life examples, develop a training session for the employees of the company. The goal of the training session presentation is to accomplish the following:

Identify the crime.
Explain what federal agency would prosecute the crime.
What punishment(s) could be enforced?
Provide other real-life examples of people who have committed this crime.

SCENARIO

Jack and Diane are married and both executives at Electro-Source, a large multinational electronics company. The couple holds substantial Electro-Source company stock and the majority of their retirement funds depend on company stock performance.

Jack is a director within the marketing division, and Diane is a vice president in charge of all North American sales. One Friday, Jack advises Diane that the company lost a large government contract for new electronic components. The contract was worth over US$1 billion in sales and the loss could signal large layoffs. Government officials have not publicly announced their contract decision; however, they have advised, privately and confidentially, several nonwinning bidders, including executives at Electro-Source.

Jack and Diane decide to immediately sell the majority of their company stock to protect their retirement savings. The market on that Friday was favorable toward Electro-Source stock as earlier reports indicated that Electro-Sources was a finalist for the contract; however, as stated, a final decision was not public yet. Jack and Diane sell their stock to unsuspecting investors through their personal broker.

Approx 8 slides with speaker notes

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