Scandal as Usual
It’s no secret that Wall Street is filled with hope of little risk and big payoff. Often when we envision thieves with ski mask robbing a bank or convenience store; however Wall Street has a history of some not following the rules and robbing people not only of their retirement, their hopes and dreams. When handling the affairs of others it is important to be completely honest and legal. This means when conducting business one should be sure that we are not compromising any ethical values. White Collar Crime is an article written about illegal trading and insider information obtained from doctors involved in a 2008 pharmaceutical trial for an Alzheimer's drug. According to Gustin this was one of the most lucrative insider schemes in United States History. Mathew Martoma was the 79th person to be convicted and was given the largest insider trading fine in U.S. history.
According to the U.S. Securities and Exchange Commission (SEC) Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. (www.sec.gov)
From the six principles of ethical principles we see that insider trading violates many of these elements. An example of a violation would be honesty. One key component to honesty is to promote the good for the public and activity. (http://www.stc.org) When one involves themselves with insider trading they are putting themselves and others at risk of legal violations. This risk can lead to jail time, fines, financial hardship, destroyed relationships and much more. Insider trading can be avoided by following all the legal guidelines. If one is unsure if the activity is legal they should...
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