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Pete Rose Case Summary

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The SEC addresses both legal and illegal insider trading applicable, but not limited, to corporate executives, directors, employees, friends and family of insiders, people who are privy to information as a result of working for a firm that has inside information due to interaction with the corporation (SEC, n.d.). The SEC governs securities, but the same guidelines can be applied to other forms of monetary investment or gambling where one party has knowledge that unfairly provides an opportunity to make a more informed decision than other participants.
Insider Trading Limits and Pete Rose The Pete Rose case is an example of illegal betting with inside information. Pete Rose should not be allowed to profit from betting on the success of his team because he has information about the players, opponents, and game plan that other betting parties do not. Further, there could be arrangements made with the other team to play differently and receive monetary compensation, compromising trust and integrity of the sport (Klosterman, 2014). Punishments should be more severe for betting on a loss since the ability to create the loss by poor performance, for example, is easier. Even with required disclosure and laws in place to deter insider gambling and …show more content…
Limitations on percentage of total securities sold at one time in a given period would minimize dumping stock prior to a merger, acquisition, or bankruptcy. For example, up to 1/10 of total stocks in the corporation can be sold within a thirty-day period. An argument could be made that these restrictions then treat ethical insiders unfairly. This also would impact company benefits through stock options incentives. The most stringent limitation would be forbidding trading of securities of an employer or when serving on a board; following the law of not betting on a sports team of which one is a

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