Insider Trading in America

Insider Trading in America Thesis: This paper explores insider trading and how despite the fact that the SEC takes many measures to prevent insider trading, it is still quite prevalent in todays world. Questions of Inquiry: · What is insider trading? o When someone gives inside information about a stock that will go up and make lots of profit. · Positive and Negative Impacts o Cons: harms the market o Cons: investors lose money o Pro: gives information about the number of people who are selling stocks o Pro: financial gain · Who has been involved in insider trading? o Martha Stewart o Rajat Gupta o Billy Walters · What does the SEC to combat inside trading? o Security o Restrict certain types of trading · What theories can be used to explain insider trading? o Misappropriation theory o Classical theory · How does insider trading effect the individual and the society? o Stock Market Structure · Introduction · Background/History · Positive and Negative impacts · Who has been involved? · Effects on society · Ways to combat insider trading · Theoretical perspectives · Conclusion Reference Brightman, H. J., Howard, L. W., & ProQuest (Firm). (2009). Today’s white-collar crime: Legal, investigative, and theoretical perspectives. New York: Routledge. – This book looks at white- collar crime as a whole. It explains what white-collar crime is and why it matters. As insider trading is a form of white-collar crime, I believe this book will give me a better insight on the different aspects of white-collar crime. Finally, this book goes through different theoretical perspective of white-collar crimes. Cichos, T. (1995). The misappropriation theory of insider trading: Its past, present and future. Seattle University Law Review, 18(2), 389. – This article discusses the misappropriation theory and where it stems from. It talks about how this theory can be used in court and has yet to be rejected. In addition, it goes through many different case studies that have used this theory. Liu, L., & Miller, S. L. (2019). Intersectional approach to top executive White?Collar offenders’ discourses: A case study of the Martha Stewart and Sam Waksal insider trading scandal. Sociological Inquiry, 89(4), 600-623. doi:10.1111/soin.12265 – In this article it talks about the Martha Stewart and Sam Waksal involvement in the insider trading scandal. The main focus of the article is on the inequality and gendered discourse among white-collar offenders. Finally, they talk about both Martha and Sam and how the both utilized media during the scandal. McGee, R. W. (2008;2007;). Applying ethics to insider trading. Journal of Business Ethics, 77(2), 205-217. doi:10.1007/s10551-006-9344-6 – This article discusses the ethical perspectives of insider trading and the pros and cons it has on the community. It goes into further detail about who can be harmed in the process, such as the employed, the stake holder or the potential sellers. In addition, the article gives insight on the beneficial effects of insider trading.