Premium Essay

Lca Insider Trading

In: Business and Management

Submitted By rakeshk02
Words 2517
Pages 11
Insider Trading – Breach of
Corporate Fiduciary During
Mergers and Acquisition
Scenario
- A Leadership and Corporate
Accountability Study
EPGPKC/02/047
EPGPKC/02/063
EPGPKC/02/064
EPGPKC/02/068
EPGPKC/02/070
EPGPKC/02/076

Bijith P. B.
Madhu Chandran
Mahashook Ebrahim
Nikhil Hari Kesavan
Paul Cherusseril Mohan
Rakesh Krishnan Sudheer

Insider:


Corporate insider has privy to information of the company (sales and profit figures, future growth indicators, management strategies and initiatives) that is yet to be released to the public.

Insider Trading :


Trading of public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company, ahead of the public release of the information. 

Tips to outsiders(friends, relatives etc.) to buy/sell stocks of his company and help them make profits or to avoid loss is also considered as insider trading Ref: http://en.wikipedia.org/wiki/Insider_trading

How Insider Trading Works?


Insider in a company collates key insights of the company position in market



Shares price-sensitive insights with group of people who buy the stocks; in some cases insider himself gets involved in stock purchase/selling



Artificial demand is created for the particular stock resulting in higher prices; shareholders are miss leaded with outcomes



Stock price grows and when 'satisfactory limit' reached, insider or his alliances exits selling stocks and reaping profit



Stock plummet resulting in loss for public investors and sometimes company itself

Impact:


Unfair to other investors [potential of investors to make large profits]



Violates transparency, which is the basis of a capital market



Investors would lose faith in their deprived position (when compared to insiders) and…...

Similar Documents

Premium Essay

Dissertation Report on Comparative Analysis of Foreign Exchange Activities: a Case Study on Some Selected Banking Companies in Bangladesh

...government's firm drive to digitize. We have already formulated a 5-year strategic plan for the financial sector based on advanced technological applications to deliver services -with utmost efficiency. The ultimate goal is to make BB a world-class central bank with high applications of technologies. It should, in fact, transform itself into a paperless organization within this plan period. BB has achieved a historic milestone in the trade and business arena, departing from conventional banking with the introduction of e-commerce recently; a giant stride towards digital Bangladesh. Banks have been allowed to make online money transactions, payment of utility bills through internet, transfer of funds (account to account), payments for trading goods and services, and facilitate online credit card payments in local currency. Indeed, electronic payments will be considered as cash transactions, which will be regulated under the Anti-Money laundering Act as well as other relevant rules and regulations. It is expected that a national payment gateway, connecting all banks for inter-bank transactions (e-banking), will be established soon. Electronic fund transfer will also be possible in near future. Necessary preparations have already been taken in this direction. Installation of Bangladesh Automated Clearing House (BACH) is another remarkable event in the history of the financial sector in Bangladesh. It will simplify the remittance channel and payment system and, therefore,......

Words: 25229 - Pages: 101

Free Essay

Business

...thank the many market participants struggling to make a difference on a critical global issue. The State and Trends of the Carbon Market 2011 received financial support from the CF-Assist Program, managed by the World Bank Institute (WBI). 4 | State and Trends of the Carbon Market 2010 List of Abbreviations and Acronyms AAU AAUPA AB 32 ACR ADB AfDB AMF AWG-KP AWG-LCA CAPEX CARB CAR CCP CCS CCX CDM CER CFL CFTC CH4 CMM CMP CPF CO2 CO2e COP CPA CPRS CP-1 CRE CRT DNA DOE EB EBRD EC ECX EE EIT EITE ER ERPA ERU ESC ESS ETS EU Assigned Amount Unit AAU Purchase Agreement Global Warming Solutions Act of 2006 Assembly Bill 32 American Carbon Registry Asian Development Bank African Development Bank Autorité des Marchés Financiers Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol Ad Hoc Working Group on Long-term Collaborative Action Capital Expenditures California Air Resources Board Climate Action Reserve central counterparties Carbon Capture and Storage Chicago Climate Exchange Clean Development Mechanism Certified Emission Reduction Compact Fluorescent Lamp Commodities Future Trading Commission Methane Coal Mine Methane Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol Carbon Partnership Facility Carbon Dioxide Carbon Dioxide Equivalent Conference of the Parties CDM Programme Activity Carbon Pollution Reduction Scheme First Commitment Period under the Kyoto Protocol Commission de régulation de......

Words: 41282 - Pages: 166

Premium Essay

Huawei Inc

...that remain eco-efficient throughout their entire lifecycle, from R&D, production, and use to scrapping and recycling Environmental Protection To reduce the resource depletion and energy consumption impacts of producing and using products and services, and to avoid using hazardous substances To effectively manage electrical and electronic waste to prevent and reduce negative environmental impacts Huawei takes environmental risks into account during decision-making in order to provide consumers with eco-efficient products and services like the SingleRAN offerings. Huawei complies with laws and regulations as well as international standards in all countries in which it operates. In addition, Huawei also uses the lifecycle assessment (LCA) method to implement environmental protection strategies throughout the product development process. As part of its green drive, Huawei focuses on designing pollution-free products and carefully gathers, stores, and disposes of electrical and electronic waste throughout the product lifecycle. Social Contribution To contribute to improving the livelihood of local people and developing the communities in which Huawei operates To exemplify good corporate citizenship everywhere Huawei operates to maximize economic, environmental, and long-term social benefits During the course of its globalization, Huawei has remained committed to benefiting local communities. Huawei’s social contribution initiatives fall into four main types: bridging......

Words: 29212 - Pages: 117

Premium Essay

Ethical Issues

...level of moral judgment. DID YOU KNOW? In a recent survey ranking 180 nations from most to least honest, the United States came in 18th (tied with Japan and Belgium). The U.S. rating of 7.3 on a 10-point scale placed it among only 22 countries that scored at least a 7.0. The top ratings went to Denmark, Sweden, and New Zealand, each with 9.3. The bottom-ranked nations, including Somalia, Myanmar, and Iraq, tend to be among the poorest. Sadly, the combination of corruption and poverty in these nations can literally amount to a death sentence for many of their citizens.20 L O 2 WHAT YOU NEED TO KNOW . . . How can companies influence their ethics environment? Business ethics are valued but sometimes lacking Insider trading, illegal campaign contributions, bribery and kickbacks, famous court cases, and other scandals have created a perception that business leaders use illegal means to gain competitive advantage, increase profits, or improve their personal positions. Neither young managers nor consumers believe top executives are doing a good job of establishing high ethical standards.24 Some even joke that business ethics has become a contradiction in terms. Too often, these opinions are borne out by actual workplace experiences. In a recent survey of 700 employees holding a variety of jobs, 39 percent said their supervisor sometimes didn’t keep promises, 24 percent said their supervisor had invaded their privacy, and Ethics and......

Words: 15103 - Pages: 61

Premium Essay

Greenhouse

...level of moral judgment. DID YOU KNOW? In a recent survey ranking 180 nations from most to least honest, the United States came in 18th (tied with Japan and Belgium). The U.S. rating of 7.3 on a 10-point scale placed it among only 22 countries that scored at least a 7.0. The top ratings went to Denmark, Sweden, and New Zealand, each with 9.3. The bottom-ranked nations, including Somalia, Myanmar, and Iraq, tend to be among the poorest. Sadly, the combination of corruption and poverty in these nations can literally amount to a death sentence for many of their citizens.20 L O 2 WHAT YOU NEED TO KNOW . . . How can companies influence their ethics environment? Business ethics are valued but sometimes lacking Insider trading, illegal campaign contributions, bribery and kickbacks, famous court cases, and other scandals have created a perception that business leaders use illegal means to gain competitive advantage, increase profits, or improve their personal positions. Neither young managers nor consumers believe top executives are doing a good job of establishing high ethical standards.24 Some even joke that business ethics has become a contradiction in terms. Too often, these opinions are borne out by actual workplace experiences. In a recent survey of 700 employees holding a variety of jobs, 39 percent said their supervisor sometimes didn’t keep promises, 24 percent said their supervisor had invaded their privacy, and 56 CHAPTER 3......

Words: 15103 - Pages: 61

Premium Essay

Computers

...developed within the team allows for instant communication. The interaction is very deep and profound. The resulting software product is delivered quickly—and, generally, with all the features and nuances that the users wanted. Q UESTIONS : 1. Could this be done differently, such as through JAD sessions or having the users review the program on a weekly basis, rather than taking the users away from their real jobs to work on development? 2. What mind-set does an analyst need to work on such an approach? jelled,12 then the likelihood of success for the XP project is reduced. Consequently, the use of XP in combination with outside contractors produces a highly questionable outcome, since the outside contractors may never “jell” with insiders.13 XP requires a great deal of discipline to prevent projects from becoming unfocused and chaotic. Furthermore, it is recommended only for small groups of developers (not more than 10), and it is not advised for mission-critical applications. Since little analysis and design documentation is produced with XP, there is only code documentation; therefore, maintenance of large systems developed using XP may be impossible. Also, since mission-critical business information systems tend to exist for a long time, the utility of XP as a business information system development methodology is in doubt. Finally, the methodology requires considerable on-site user input, something that is frequently difficult to obtain.14 Agile versus......

Words: 253572 - Pages: 1015

Premium Essay

Jerry York and Gm

...bills in Congress. While it is critical to understand existing regulations – they have an immediate impact on GM’s strategy – the group also focused on pending legislation, particularly climate policy that has been receiving greater attention. Although some of these bills may not pass through Congress, understanding current discussions can shed insight on regulations that might influence GM in the near future. Forecasting policy, whether market-based or command-and-control, can have important implications for how GM should be positioning themselves within the industry. Being an industry leader in an area such as carbon emissions has additional benefits should any regulations be implemented. In the case of a market based policy, such as a trading scheme, having the lowest carbon footprint would mean that the company would be 35 Recommendations Recommendation Development While performing research around the original topic areas, the team recognized that they overlapped in terms of underlying challenges and potential opportunities. That is, the most impactful recommendations might span across the organization, helping leadership to connect the dots between seemingly disparate groups and functions in order to maximize the value of sustainability. With the goal of maximizing the potential impact at GM, the team reasoned that while the subject areas represent some of the most salient sustainability issues at GM, they are not exhaustive in their scope. The team believed......

Words: 38081 - Pages: 153

Free Essay

World Bank Report - Business Transparency

...regulation References Data notes Ease of doing business and distance to frontier Summaries of Doing Business reforms in 2010/11 Country tables Employing workers data Acknowledgments Doing Business 2012 is the ninth in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulation and the protection of property rights that can be compared across 183 economies—from Afghanistan to Zimbabwe—and over time. Regulations affecting 11 areas of the life of a business are covered: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency (formerly closing a business) and employing workers. The employing workers data are not included in this year’s ranking on the ease of doing business. Data in Doing Business 2012 are current as of June 1, 2011. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why. Chapters exploring these issues for each of the 11 Doing Business topics—as well as showing global trends—are being published online this year. The chapters are available on the Doing Business website at http:/ /www.doingbusiness.org. The methodology for the dealing with construction permits, getting credit and paying taxes indicators......

Words: 173471 - Pages: 694

Premium Essay

Textbook Business and Ethics

...Reform and Alternative Dispute Resolution 346 Positive Business Responses to Consumerism 348 Managing for Quality 348 Voluntary Industry Codes of Conduct 349 Consumer Affairs Departments 350 Product Recalls 351 The Employment Relationship Workplace Rights 358 312 355 357 The Right to Organize and Bargain Collectively 358 The Right to a Safe and Healthy Workplace 359 The Right to a Secure Job 362 Privacy in the Workplace 315 334 Reasons for the Consumer Movement The Rights of Consumers 336 Chapter 16 Employees and the Corporation 309 The Board of Directors 313 Principles of Good Governance 325 Securities and Exchange Commission 325 Information Transparency and Disclosure 325 Insider Trading 326 Consumerism’s Achievements 351 Summary 352 Key Terms 352 Internet Resources 352 Discussion Case: Big Fat Liability 353 PART SEVEN Corporate Governance Government Protection of Stockholder Interests Consumer Privacy in the Digital Age 342 Special Issue: Product Liability 345 300 Who Are Stockholders? 310 Objectives of Stock Ownership 312 Stockholders’ Legal Rights and Safeguards 322 Goals of Consumer Laws 336 Major Consumer Protection Agencies Summary 303 Key Terms 304 Internet Resources 304 Discussion Case: Cardholders’ Information at Citigroup Hacked 305 Stockholders The Rise of Institutional Investors Social Investment 322 Stockholder Lawsuits 324 317 Electronic......

Words: 318988 - Pages: 1276

Premium Essay

Ethics

...You Do? Cases End Notes xv 1 1 1 3 3 4 4 5 6 10 14 16 20 22 23 24 24 26 30 Chapter 2 Ethics for IT Workers and IT Users Vignette IT Technicians Fired After Reporting Child Porn IT Professionals Are IT Workers Professionals? The Changing Professional Services Industry Professional Relationships That Must Be Managed Professional Codes of Ethics Professional Organizations Certification Government Licensing IT Professional Malpractice IT Users Common Ethical Issues for IT Users Supporting the Ethical Practices of IT Users Summary 33 33 33 37 37 37 38 46 47 49 52 53 54 54 55 58 Self-Assessment Questions Discussion Questions What Would You Do? Cases End Notes 59 60 60 62 66 Chapter 3 Computer and Internet Crime Vignette Trading Scandal at Société Générale IT Security Incidents: A Major Concern Why Computer Incidents Are So Prevalent Types of Exploits Types of Perpetrators Federal Laws for Prosecuting Computer Attacks Implementing Trustworthy Computing Risk Assessment Establishing a Security Policy Educating Employees, Contractors, and Part-Time Workers Prevention Detection Response Summary Self-Assessment Questions Discussion Questions What Would You Do? Cases End Notes 69 69 69 73 74 75 81 86 87 89 91 92 93 97 97 101 101 103 103 105 109 Chapter 4 Privacy Vignette Privacy Concerns Abound with New IRS Systems Privacy Protection and the Law Information Privacy Privacy Laws, Applications, and Court Rulings Key Privacy and Anonymity Issues Identity Theft......

Words: 204343 - Pages: 818

Premium Essay

Work, Culture and Identity in Mozambique and Southafrica 1860-1910

...history", 103. 51. For workers in the northern hemisphere, see Rjoyce, ed., The Historical Meanings of Work (Cambridge, 1987). j.Fabian makes the same point in his the conceptualisation of labor in a charismatic movement among Swahili-speaking workers" Cahners d'Etudes Africaines 50, 1971. E nvzronment, Culture and Mzgmtzon Well over three hundred years after the first Portuguese set foot on the shores of Delagoa Bay, the Lusitanian empire retained only a fragile presence in the area. In 1843 the governor of Lourenco Marques wrote despondently that the outpost perched on the northern edge of the bay "lay at the mercy of the blacks, who are acquainted with our weaknesses and have hemmed us within the confines of our fort."l The obscure trading settlement was manned by an unruly garrison, was visited by only a handful of vessels every year, and was a source of plunder for neighbouring chiefdoms. Some 280 miles to the north life was equally turbulent at Inhambane, a notorious centre for the export of slaves.2 Slavery experienced a slow death at these "outposts of progress." In 1863 well over a third of the population at Lourengo Marques was made up of slaves and degredudo convicts shipped from Lisbon to Africa; at Inhambane some 3,200 slaves laboured on the plantations around the town.3 ln the years immediately after the Gaza civil war of 1858-1862, Lourenqo Marques fell under an expansionist Swazi kingdom, the shadow of which fell over most of the central and northern Delagoa......

Words: 178350 - Pages: 714