16 October 2012 Insider Trading In a securities market there are winners and losers‚ people who get good prices and people who get bad prices. Other things equal‚ the person with the best information about what is being bought or sold stands in the best position to find bargains and get the best price. Competing against corporate insiders‚ who possess superior information thus increases the risk that one loses. As a society
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Abstract: "Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. Every day‚ investors have the opportunity to put their money into more than 15‚000 U.S. stocks. It should come as no surprise to anyone that insider trading occurs every day in the stock market. In 1934 the U.S. Congress enacted the Securities and Exchange Commission (SEC) to protect corporate investors‚ it realized that
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Martha Stewart Insider Trading: Case Analysis Report Part I: The Case Fraud‚ lying‚ conspiracy...not terms that any individual generally wants associated with their history‚ nonetheless with their reputation and personality‚ especially if that individual happens to be Martha Stewart. Martha Stewart: a name which almost every person who calls themselves an American can recognize. Her name pronounces itself across cookbooks‚ magazines and even has its own show on Style and The Learning Channel
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The Economics of White-Collar Crime: An Economic Analysis of Insider Trading in Canada Introduction In the past decade‚ white-collar crime such as illegal insider trading‚ banking fraud‚ ponzi schemes‚ corporate embezzlement and political money laundering has reached an all-time high. In North America alone‚ respected and highly influential individuals such as Martha Stewart‚ Bernie Madoff‚ and Conrad Black have been prosecuted for their crimes and companies such as Fannie Mae and AIG were
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Scandals: Martha Stewart and the ImClone Insider Trading Deal A very famous scandal that has embedded ourselves in our history is the Martha Stewart scandal of 2003. Martha Stewart is a true success story of the American dream in effect. Starting as a housewife‚ Martha created her career by turning her previous business experience and career into a household name and an enterprise. Having established Martha Stewart Living Omnimedia‚ Inc. (MSO)‚ which handled everything from print to television
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returns—that is to say‚ returns that are different from what one might expect them to be based on various characteristics of the investment—by identifying so-called “inefficiencies” in the stock market. Perhaps one of the most well-known strategies for taking advantage of these inefficiencies‚ a strategy widely discussed in academic as well as industry literature‚ is following the trades of company insiders. In the United States‚ company insiders are required to report to the SEC any time they engage
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The Martha Stewart 2004 Trial Introduction A white collar crime is a category that includes embezzlement‚ insider trading and bank fraud just to name a few. These crimes are committed for monetary gain and are highly illegal. Martha Stewart known for her creative decorating‚ her craftiness and her multi-million dollar business was convicted in 2004 for what many call securities fraud or insider trading. In 2001 she sold all of her stocks of ImClone Systems‚ Inc after being
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no. 1-0083 Martha Stewart and the ImClone Scandal On January 20‚ 2004‚ jury selection launched the trial of Martha Stewart‚ Chief Creative Officer and former Chief Executive Officer and Chairman of the Board of Martha Stewart Living Omnimedia (MSO). Nine charges filed by the Federal Grand Jury in New York and the SEC relate to Stewart’s personal sale of $228‚000 in ImClone Systems‚ Inc. stock on December 27‚ 2001‚ one day before regulators rejected the biotech company’s cancer drug (Erbitux)
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I love to cook‚ so finding and trying out a new recipe for me is great. When I have the time‚ I love to watch cooking shows on TV‚ so what comes to mind for me‚ is the Martha Stewart scandal in 2004. In 2001‚ Martha Stewart had received an inside tip from her stockbroker that her stock‚ ImClone Systems was going to fall‚ so she sold her almost 4‚000 shares in the company to avoid an almost $46‚000 loss‚ the next day the stock fell 16%. Over the next few months‚ Martha’s activies were being investigated
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Martha Stewert is the owner of Omnimedia which handles her show‚ clothing line etc. What she did was owned a large sum of stock in a biotechnology firm (ImClone) and was chums with them. She was tipped off that one of the things they researched did not pan out. The spending on the project would not yeild any sales so the expected companies profits would never be. This is a bad thing if you own the stock the way Martha Stewart did. The illegal part was that she was told that the company was not doing
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